Tag Archives: Papua New Guinea

Ok Tedi Mining board greenlights mine life extension to 2050

Base metals, Environmental, Mine operation news, Precious metals, Water management, , , , , ,

The Board of Ok Tedi Mining Limited (OTML) has approved in principle a further mine life extension from 2033 to 2050, marking a significant milestone for OTML, its shareholders and for Papua New Guinea (PNG) in general.

It is also a sign of the confidence the board has in the company’s ability to deliver over the next two decades.

The approval is based on the latest Strategic Business Plan submitted by the Executive Leadership Team and discussed during the OTML Board meeting held in Tabubil on September 13, 2023.

“This extension brings to life OTML’s vision to operate with excellence, maximising the value of the mineral resource in an environmentally friendly way, to deliver sustainable economic and social benefits to the mine communities and the people of PNG,” The company said. “Several factors have enabled the extension including a strengthened long-term copper price outlook, additional mine waste management solutions such as engineered waste rock dumps and a tailings storage facility to minimise impact on the environment, renewal of aged processing plant assets and implementation of other strategic projects that are currently in various stages of completion.”

The Ok Tedi mine is an open-pit copper, gold and silver mine located at Mt. Fubilan in the Western Province of PNG. Up to 240,000 t/d of overburden is mined from a pit covering about 2.6 sq.km. In addition, about 60,000 t/d of ore is mined and delivered to the mill for processing.

Managing Director & Chief Executive Officer, Kedi Ilimbit, said “The approval by the board on the eve of PNG’s 48th Independence anniversary is a welcomed gift to the communities in which we operate and who provide us the social licence to continue, as well as to the people of PNG. The revised mine life will see the company generate in excess of PGK30 billion ($8.25 billion) in dividends, royalties, compensation payments and taxes for the benefit of OTML’s shareholders, communities and Papua New Guinea as a whole over the next 27 years.”

TORSUS reinforces off-road bus offering for mining companies

Mining equipment, Mining safety, , , , , , , , , , , , , ,

Armed with a remit of building vehicles for the world’s toughest jobs, TORSUS is looking to bridge the gap between off-highway personnel carriers and on-highway buses in the mining industry.

Having only entered this territory in 2017 with the launch of its first-generation PRAETORIAN off-road bus for a maximum of 35 people (including the driver), TORSUS is a relative newcomer, but it is adapting quickly to the whims of modern-day mining companies.

TORSUS leverages off its parent company, Pulsar Expo s.r.o, a Czech Republic-based entity with production facilities in Slovakia, while having partnerships in place with MAN and Volkswagen on key chassis and powertrain technology.

Vakhtang Dzhukashvili, CEO of TORSUS, explains how this combination results in a unique offering.

“We have come up with a product to meet the needs of the market by offering a standard all-terrain MAN chassis on our vehicles and robust Volkswagen powertrains with all the customisation options you need to make it robust, as well as comfortable for transporting personnel,” he said.

In terms of suspension, the PRAETORIAN, which was updated in 2021, benefits from leaf-spring with differential lock suspension on the front axle and air suspended suspension on the rear axle. It also has Michelin XZL 365/80 R20 tyres, two “comfort options” for seats, ground clearance of up to 400 mm and military-grade elastomeric panels. These are accompanied by a drivetrain warranty of up to six years, or 900,000 km, and a whole vehicle warranty of two years without mile limitation.

The PRAETORIAN off-road bus can transport a maximum of 35 people (including the driver)

These 2.54-m-wide by 8.7-m-long vehicles have been proven in tourism transport applications taking people up Mount Etna in Italy – aided by a MAN six-cylinder diesel engine with 286 hp (213 kW) of power and 1,150 Nm of torque, as well as a heavy-duty 4×4 off-road transmission. This specification, in fact, means it can go up inclines as high as 65%.

Mining, defence and tourism are TORSUS’ major markets, each holding around 33% market share, according to Dzhukashvili.

“In mining, the PRAETORIAN presents a new option for companies looking to transport personnel on scale to site,” he says. “Instead of using multiple off-road personnel carriers to transport people to and from the off-grid mine site or – the other option – developing paved roads earlier in the development process, we can offer something to bridge the gap.”

One can imagine multi-mine operators in West Africa, for example, making the most of this by leveraging vehicles to transport personnel to site depending on the stage of development. The vehicle – which can also drive on-road – could then move to another site after paved roads are established.

Companies looking to transport fewer people to off-road operations may be interested in the TORSUS TERRASTORM. This vehicle has the same robust ideologies of the PRAETORIAN, but is equipped to transport up to 17 people (including the driver).

Both these vehicles have won admirers in the mining sector, with units already stationed at operations in Chile, Gabon, Ghana, Mali and Papua New Guinea.

Dzhukashvili expects more mining deployments in the future, as the wider industry acknowledges the niche the company is serving.

“With the backing of MAN and VW, and the ability to deliver customised options in-house, we have all the components needed to make these off-road buses robust, comfortable and long lasting,” he said. “Add to that worldwide support from the MAN and VW network, plus our own dealership base, and we’re convinced no-one can offer what we offer the mining business.”

Newcrest to leverage ‘steep wall technologies’ on Lihir Phase 14A project

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The Newcrest Mining Board has approved the Lihir Phase 14A feasibility study, endorsing the Papua New Guinea project into full implementation.

As part of the study, site investigation and trial works have been completed and a plan has been developed which extends the Phase 14 cutback and safely steepens the walls of the pit using civil engineering techniques, the company says.

Completion of a drilling program has significantly improved the geotechnical knowledge of the cutback area and enabled refinement of the anchor design and placement to better suit the geotechnical conditions.

Ground anchors will be installed in the upper benches of the cutback to support the steeper wall angles in these areas. The slope angles of the lower benches will be similar to the existing walls in Phase 14. The upper Argillic horizons without ground support typically have an unsupported slope angle of circa-45°, which has been increased to circa-68° using ground anchors. The improved geotechnical knowledge has enabled the study design to reduce slope angles from circa-77% in the prefeasibility study while improving overall stability.

The study outlined a project with estimated total capital expenditure on a real basis of circa-$280 million and a nominal basis of circa-$296 million. For this, the company is looking at circa-400,000 oz/y of incremental Phase 14A gold output from the 2023-20226 financial years. On a life of mine basis, this incremental production would increase to circa-800,000 oz/y.

Newcrest Interim Chief Executive Officer, Sherry Duhe, said: “The development of Phase 14A is another innovative step forward in realising the full potential of Lihir. The findings of the study are expected to deliver gold production from an additional high-grade ore source which would have otherwise been inaccessible through standard mining techniques.

“The study outlines an updated life of mine plan, with upside potential. The application of steep wall technologies, together with an alternative, lower cost and simpler seepage barrier design have the potential to enable access to additional high-grade zones outside the current ore reserve and extend the elevated production profile beyond the 2031 financial year.

“Our team continues to work diligently to maintain a strong focus on capital discipline, placing several recovery improvement capital projects on hold that currently do not meet our investment criteria. The Phase 14A ore zone is now well informed by geotechnical drilling that underpins the design and stability of the cutback, and we expect Phase 14A to be delivering higher-grade ore from financial year 2024.”

Through an early works program, mining of Phase 14A commenced in the June 2022 quarter and will continue through to the 2027 financial year. Ore mined from Phase 14A will displace lower-grade ore feed to the processing plant, with circa-13 Mt of high- and medium-grade ore from Phase 14A expected to be fed through to the 2026 financial year to produce that incremental circa-400,000 oz of gold. Lower grade material will be stockpiled and fed progressively over the remaining mine life.

The Lihir gold production schedule forecasts mining rates to increase up to 55 Mt/y over the coming years. Ore from Phase 14A is expected to be mined between the 2022 financial year and the 2027 financial year with high-grade ore fed directly to the mill while the lower-grade ore will be processed over the life of mine.

Mining rates for Lihir are expected to continue to increase over the coming years through a combination of equipment capacity and mining efficiency projects. Additional mining capacity has been delivered following a program of truck re-builds and the replacement of primary dig units completed in the 2022 financial year. In combination with a “maintenance excellence program”, mechanical availability has increased to 84% from 79% over the last 12 months, Newcrest said.

Mine efficiency improvements identified in the most recent study have also been realised including improved fleet utilisation and effective dispatch tactics to reduce equipment delays. Open-pit productivity continues to advance with Lihir delivering strong improvement in ex-pit movements during 2022.

Further application of the civil steep slope technology used in Phase 14A is being assessed to potentially unlock additional high-grade mineralisation outside the current ore reserve in the northern and eastern extents of the Kapit orebody, Newcrest says. This work has the potential to improve the production profile beyond the 2031 financial year, before the high-grade ore from Kapit declines. The design optimisation and associated impact on the longer-term production profile is expected to be completed in the second half of 2023.

“In addition, following completion of the Seepage Barrier Feasibility Study in October 2021, an alternative seepage barrier design, the Nearshore Soil Barrier (NSB) option, is currently being studied,” the company said. “The NSB would sit between the No Coffer Dam limit and the existing shoreline of the Inner Harbour, approximately 500 m west of the proposed Kapit Seepage Barrier (KSB).

“Initial work indicates that the NSB would be a simpler solution, faster to construct and less costly. A prefeasibility study (PFS) level assessment of the NSB option is currently underway and is expected to be completed in 2023.”

Newcrest said the study production profile has been updated, with mill throughput rates revised to incorporate increased ore hardness based on an improved geometallurgical understanding. Mill operating time has been revised to reflect current mill performance with a more progressive ramp up in improvement. Options to increase throughput rates continue to be assessed going forward. Recovery assumptions have also been adjusted, with several recovery improvement capital projects no longer meeting Newcrest’s investment criteria following the inclusion of cost inflation pressures into estimates. These projects have been placed on hold and will continue to be assessed for potential inclusion into the mine plan at a later date, it said.

Orica’s hardware and software platforms converging for Mining 4.0

Automation, Explosives and blasting, IoT, Mining equipment, Mining safety, Mining services, Mining software, , , , , , , , , , , , , , , , , , , , , ,

Orica’s corporate vision of “mobilising Earth’s resources in a sustainable way” is being further realised through a host of developments from its Digital Solutions and Blasting Technologies divisions, IM reports.

Those involved in charging operations could soon benefit from the launch of Orica and Epiroc’s Avatel™ solution, which, in combination with the WebGen™ wireless initiation platform, offers the ability to remotely blast a development face.

At the same time, the company is busy with the sustainable production of emulsion, the integration of geological orebody information to optimise energy use for blasting, and the expansion of downstream mineral processing tools.

Avatel

Avatel is a combination of state-of-the-art hardware and software solutions designed to mechanise the blasting process.

It includes Orica’s HandiLoader™ emulsion process body, Epiroc’s M2C carrier integrating an RCS 5 control system with Orica’s LOADPlus™ control system, a WebGen 200 wireless initiation system and an automated WebGen magazine. Epiroc has also incorporated onboard dewatering and lifter debris clearing capability, while Orica’s SHOTPlus™ intelligent blast design software is leveraged to deliver superior blasting outcomes, Orica says.

Orica and Epiroc’s advanced technologies integrated into the Avatel system

These components help eliminate the need for personnel exposure at the development face throughout the charging stage of the mining cycle, keeping personnel out of the line of fire, by substituting inherently high hazard manual tasks with a mechanised development charging solution.

A prototype Avatel unit is set to commence operations at Agnico Eagle Mining’s Kittilä gold mine in Finland in the next few months. This follows “alpha trialling” of the complete prototype unit at Epiroc’s Nacka test mine in Stockholm, Sweden.

Adam Mooney, Vice President of Blasting Technology for Orica, said: “Our goal for Kittilä is to expose Avatel to a real mining environment, putting the unit through its paces in an active mine where safety, productivity and reliability are core requirements for success.

“We will gain a practical understanding of how Avatel will fit in with and benefit the entire mining cycle, while also taking the opportunity to measure the blasting improvements possible through the combined use of electronic initiation timing and the precise blast energy control available with Avatel.”

A separate unit, meanwhile, will head to Newcrest Mining’s Cadia copper-gold mine in New South Wales, Australia, later this year, for the first commercial deployment. This is currently undergoing pre-delivery commissioning at Epiroc’s customer centre in Burnie, Tasmania.

Cyclo

Not too far away in Papua New Guinea, Orica has successfully commissioned a Cyclo™ emulsion technology unit, which has been running at a customer site for around two months, according to Mooney. The unit in question has treated in excess of 100,000 litres of used oil, he said.

Cyclo combines the company’s emulsion technology with used oil processing technology to transform mine-site used oil for application in explosives. To provide the tight quality control and regular testing required to manufacture emulsions with such inputs, Orica has partnered with CreatEnergy to develop a standalone, on-site solution to treat used oil.

Orica initially scheduled Cyclo for market introduction in late 2022, but it scaled and sped up development and production plans to support customers’ operations and curtail material disruptions brought about by COVID-19.

The first automated containerised used oil recycling system was commissioned in Ghana late in 2021, with the Papua New Guinea unit being the latest deployment.

Cyclo – containerised, automated used oil recycling service at a customer site in Ghana, Africa

A Senegal Cyclo debut is on track for July given the unit is already in country and connected into the emulsion plant on site, Mooney explained.

The company also plans to bring to market a Cyclo unit suitable for Arctic conditions by the end of this year, with the solution already under construction.

Data to insights to intelligence

Aside from hardware and sustainable emulsion solutions, Orica has recently signed an agreement with Microsoft Azure predicated on creating data-rich and artificial intelligence-infused tools that enable productivity, safety and sustainability benefits on site, with Raj Mathiravedu, Vice President of Digital Solutions, saying such a tie-up enables the company to think of the blasting value chain in a much more holistic manner.

“Orica Digital Solutions’ purpose is to develop and deliver a suite of integrated workflow tools to enable the corporate vision of mobilising Earth’s resources in a sustainable way,” he said. “A key attribute to delivering this workflow is the journey that we need to incorporate from data to insights to intelligence.”

Mathiravedu says the company is looking to go beyond the traditional solutions pairing software and IoT devices for a discrete product to – with the help of Microsoft Azure capabilities – building “answer products” focused on improving workflows.

“These workflows can benefit from understanding how geology within the orebody intelligence space can help us determine the optimised energy required for blasting in a real-time production workflow,” he said. “We have started this journey and are already delivering value to our customers by integrating workflows from orebody to processing.”

One example of this is the company’s FRAGTrack™ suite of solutions, devised to provide blast fragmentation data with auto-analysis capability.

Delivered as part of the company’s BlastIQ Digital Optimisation Platform, FRAGTrack is able to capture real-time fragmentation measurement data for optimising drill and blast operations, improving downstream productivity and tracking of operational performance.

Originally developed for measurements on both face shovels and conveyors, the solution was expanded earlier this year with the launch of FRAGTrack Crusher for automated pre-crusher fragmentation measurements.

FRAGTrack Crusher installation at Stevenson Aggregates

There are several vendors offering fragmentation measurement tools throughout the industry, but Mathiravedu says Orica’s solution can carry out such analysis consistently and accurately – day or night – in extremely dusty and dynamic environments like mining.

“The FRAGTrack image processing technology can handle extremely dusty and lighting-affected conditions beyond any solutions in the industry,” Mathiravedu said. “It is also able to learn and adapt to specific operational environments like the dumping habits of different truck operators using artificial intelligence technology. Together with the integration with fleet management systems, it can provide a fully autonomous and integrated measurement solution.”

On conveyors, the FRAGTrack solution can reliably measure fines with increased accuracy compared with conventional systems that leverage curve-fit algorithms, according to Mathiravedu, with the advanced image and 3D processing techniques providing the ability to measure fragments down to 5 mm in size.

The combination of FRAGTrack Conveyor and Orica’s ORETrack™ solution can provide not only particle size distribution information, but also critical information on ore grade and hardness for the milling operations in real time.

“The FRAGTrack platform architecture has been designed to be scalable to incorporate different sensor inputs along with its high-performance GPU compute capabilities,” Mathiravedu said, explaining that there could be further analysis solutions down the line.

Newcrest’s Lihir operation boosts safety with latest Olitek Anako Sense solution

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Newcrest Mining’s Lihir operation in Papua New Guinea has commissioned an improved Temperature Measuring Unit (TMU) that, it says, further enhances safety for personnel working at its geothermally active open-pit operations.

This second generation TMU, called Anako Sense, follows the commissioning of the Anako 13 prototype on March 6, 2018, at Lihir. The unit engineers out the risk of personnel exposure to geysering events during drill hole measurement activities, according to the technology developer Olitek Mining Robotics (OMR).

Anako 13 allowed geothermal technicians to operate a mobile arm from the vehicle remotely, while simultaneously lowering or raising a probe safely to measure and record temperature, water level and depth within blastholes. It was designed to mechanise this quality monitoring process in the open pit, removing operators from danger and putting them in the safety of an air-conditioned cabin.

The Mark 2 machine just delivered to Lihir provides faster than manual cycle times, while eliminating fatigue, repetitive strain injury and exposure risks, according to OMR. It also provides real-time data capture of borehole quality measurements.

Newcrest teams collaborated with several business partners to deliver the Anako Sense unit early this year, allowing geothermal technicians to continue carrying out their work safely as Lihir’s mining pit phases extend deeper and further north into Kapit orebody, the miner said.

Lihir Manager – Mine Technical Services, Ben Likia, thanked various Newcrest teams and business partners for delivering the project safely and ensuring a timely site deployment of Anako Sense, including training sessions for key personnel.

“I also congratulate our national employees who completed their training sessions,” he said. “We have competent geothermal personnel who are now operating the new TMU, and several mobile maintenance personnel who will assist in ensuring the TMU is regularly maintained and fit for purpose.

“The safety of our people in Lihir is our number one priority, and this improvement is testimony to that. We are committed to ensuring everybody goes home safe and healthy every day.”

While Anako Sense has obvious applications at mine sites with geothermal hazards like Lihir, the technology’s appeal is much broader, according to James Oliver, OMR’s Managing Director.

“Anako Sense could be used and applied at any mine operating in freezing cold conditions, at high altitudes, located in inland deserts, or around voids,” he said. “The quicker we get people off the bench and into safe vehicle cabins, the better off the industry will be. The development of Anako Sense will help that transition.”

Lihir Superintendent – Geothermal Operations, Kaipale Pano, said the enthusiasm and feedback from the project team and personnel had been heartening.

“The project is a success for Newcrest Lihir because we (Newcrest) encourage employees to experiment with new ideas to improve safety and production performance,” he said. “We displayed Newcrest’s practice – ‘Bottom-up Innovation’ – and values – ‘Working Together’ and ‘Innovation and Problem Solving’ – through this project.

“We are proud to have the best people and outstanding operators, mostly Papua New Guineans, who constantly team up to deploy safe and latest mining technologies at Lihir.”

The name Anako was inspired by an incident at Lihir nine years ago. In 2013, Samuel Ayata, a Geothermal Technician from Eastern Highlands and Morobe, sustained injuries from geysers when collecting blasthole data. His father, Ayata Anako, collapsed upon receiving news about the incident and was bedridden for almost three weeks, pleading with his son to quit his job.

Ayata said: “The scars on my body were a drive for our team to take on this safety initiative and continue improving it; we named the TMU after my father. I thank Newcrest for supporting our commitment to work safely for our families.”

Monadelphous Group banks work with Rio, Tronox and Newcrest

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Monadelphous Group has announced several new contracts and contract extensions in the resources and energy sectors in Australia and Papua New Guinea, including work with Rio Tinto, Tronox Mining Australia and Newcrest Mining.

The awards totalled some A$230 million ($172 million).

One of the contracts the engineering firm has secured is with Rio Tinto for the provision of shutdown works at the Greater Tom Price operation in the Pilbara region of Western Australia. The work includes upgrades and modifications to existing process plant infrastructure at the Western Turner Syncline Phase 2 project (pictured), with work expected to be completed in the second half of 2022.

In New South Wales, Monadelphous has secured a multi-disciplinary construction services contract with Tronox Mining Australia in Broken Hill, where the mineral sands producer processes its heavy mineral concentrate from other operations in Australia. The work is expected to be completed in the second half of 2022.

Finally, in Papua New Guinea, Monadelphous has been awarded a contract with Newcrest to provide engineering, procurement and construction services on the CCD 3 & 4 Refurbishment Project at Lihir Island. The work, which includes the major overhaul of two tanks associated with the gold production facilities, is expected to commence onsite in July 2022 and be completed in mid-2023.

Nickel 28 claims industry ‘first’ carbon neutral status

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Nickel 28 Capital Corp has become what it believes is the first carbon neutral refined nickel-cobalt producer in the world through a transaction involving the purchase of 52,500 carbon offsets on the Verra Registry.

The carbon offsets will, it says, fully offset Nickel 28’s anticipated 2021 attributable greenhouse gas (GHG) emissions from the Ramu integrated nickel-cobalt mine and refinery in Papua New Guinea (pictured), an asset it owns 8.56% of.

Anthony Milewski, Chairman of Nickel 28, said: “We are incredibly excited to be one of the first, if not the first, producers of refined nickel and cobalt in the world to fully offset its carbon footprint.

“We feel strongly that each of us has an obligation to do our part personally and professionally to help stave off the negative impacts of climate change. As the world pivots to electric vehicles and other means of decarbonisation, it is imperative that the critical basic materials fuelling the transition have the minimum possible impact on the environment.”

On February 9, Nickel 28 announced it had completed an independent analysis on GHG intensity for the Ramu nickel-cobalt operation, confirming the operation is one of the lower GHG emitters in the nickel industry. Ramu’s average GHG intensity has been calculated at 15.6 t of carbon dioxide equivalent per tonne of nickel (15.6 tCO2e/t Ni) in mixed hydroxide product. This compared favourably with a nickel industry average GHG intensity of 36.6 tCO2e/t Ni as calculated by Wood Mackenzie, Nickel 28 said.

The company says it will continue to introduce greater environmental, social and governance transparency with respect to its assets in response to investor and industry trends.

“In addition to GHG emission reporting, Nickel 28 will be providing further clarity with respect to other key measures such as health and safety statistics, community investment, energy and water usage, rehabilitation, and land reclamation,” it said.

Nickel 28 currently holds an 8.56% joint-venture interest in the Ramu operation, with Ramu operated by the Metallurgical Corporation of China, which, along with its partners, owns an 85% interest in Ramu.

Ramu produced 33,659 t of contained nickel in mixed hydroxide product in 2020, compared with 32,722 t in 2019.

Wärtsilä takes on power plant performance contract at Lihir gold mine

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Wärtsilä is to help optimise the performance of the Lihir gold mine’s 170 MW power plant, in Papua New Guinea, as part of a 10-year tailored guaranteed asset performance agreement signed with Lihir Gold Ltd, part of Newcrest Mining.

The agreement has shared business case incentives based on key performance indicators (KPIs), which reduce operational cost and enhance power availability, supporting the mine’s production targets, according to Wärtsilä.

The 10-year agreement, worth over €150 million ($183 million), was signed in October and is targeted to take effect from the end of the March quarter. The expected revenues for 24 months of operation, some €20 million, have been included in Wärtsilä’s order book in the December quarter.

Lihir’s 170 MW power plant provides a critical electricity supply to run the operations of the mine. It has 22 Wärtsilä engines, of which the last one was commissioned in 2013.

The incentivised KPIs will lead to an increase in revenue and a reduction in operational cost, according to Wärtsilä, with the partnership enabling Lihir Gold to focus on gold production while Wärtsilä takes care of optimising the power plant performance.

The agreement will also provide the customer with maintenance and parts cost predictability, including a reduction in working capital.

The agreement includes full technical support, real-time monitoring of the equipment from Wärtsilä’s Expertise Centres, condition-based maintenance and asset diagnostic reporting, operational advisory support, as well as all planned and unplanned maintenance of the generator sets and auxiliaries. The agreement KPIs with shared incentives are based on fuel and oil consumption and power availability, with the option to adjust these KPIs by mutual agreement should the market change.

Daniel May, Manager – Power, Utilities, Projects & Engineering, Lihir, Newcrest Mining, said: “During the initial market engagement process, it was determined that Wärtsilä’s experience, track record and capabilities in Papua New Guinea made them the best partner to further develop the partnership agreement that has now been signed. This is a flexible solution that delivers incentives and benefits to both parties.”

Henri van Boxtel, Energy Business Director, Wärtsilä Energy, added: “This agreement takes a holistic approach to the plant’s operations and maintenance, and reflects the importance of the strategic partnership between Wärtsilä and the customer. By linking the availability and performance of the power generating plant to the mine’s productivity, we are establishing a flexible and beneficial business case that promotes efficiency and delivers real value over the entire lifecycle of the power plant. We are at the same time aiming to increase the reliability of the electrical supply, which can help raise the mine’s output.”

The total installed base of Wärtsilä’s power generating equipment in a number of projects in Papua New Guinea is 381 MW, of which 170 MW has been supplying power to Lihir Gold.

Fortescue to evaluate green hydropower opportunities in PNG

Environmental, Power supply for mines, Sustainable mining, , , , , ,

Fortescue Metals Group’s Fortescue Future Industries Pty Ltd has signed an agreement with the Papua New Guinea Government and wholly-owned corporation, Kumul Consolidated Holdings Ltd (KCH), that could lead to the development of PNG’s hydropower resources to support ‘green’ industrial operations.

Under the deed, the parties will promptly investigate the feasibility of these green projects for both domestic and export markets, a move Fortescue says is consistent with its record of delivering both capital growth and yield to its shareholders while sharing the benefits of sustainable development and employment with local communities.

KCH is the entity which holds in trust, the Papua New Guinea government’s non-petroleum and non-mining assets.

“Fortescue Future Industries shares Fortescue’s commitment to a green industry future and will work closely with local people and communities to establish training and long-term careers,” the company said. “This is fully aligned with Fortescue’s approach from its inception that the communities in which we operate will benefit from our growth and development.”

Subject to the completion of feasibility studies and approvals, individual projects will be developed by Fortescue Future Industries with ownership and project finance sources to be separately secured without recourse to Fortescue, the company explained.

“Execution of studies and approach to capital investment will be consistent with Fortescue’s track record of developing multi-billion dollar projects in the Pilbara, at an industry leading capital intensity,” it added.

(Pictured above is the Warangoi Hydropower Station in East New Britain, PNG, operated by PNG Power)

K92 Mining continues to add new equipment at expanding Kainantu gold mine

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K92 Mining, despite the onset of COVID-19, has made significant progress on its plans to increase production at its Kainantu gold mine in Papua New Guinea.

In March 2020, Kainantu achieved a major milestone, commencing the first long hole stope using the modified AVOCA method. This method is ideal for narrow vein/lens higher-grade stopes and can provide higher tonnages through continuous fill and blasting, as well as improved dilution control, according to the company.

The commencement of this new mining method is significant since previous mining has been exclusively from lower productivity and higher-cost development and cut and fill stoping, K92 said.

The first stope was from the K1 Vein and, to date, long hole stoping activities have performed in-line with design and have been increasing, providing a notable positive impact on operational flexibility, the company added.

Mining operations, which have been expanding in line with the 2019 decision to expand throughput to 400,000 t/y, from 200,000 t/y, have also benefited from further additions to the mining fleet.

The Papua New Guinea COVID-19 State of Emergency declared on March 20, 2020, saw limited impact to freight, with the arrival of a third Sandvik LH517i underground LHD loader with AutoMine® capabilities, a third CAT AD45B 45 t underground truck and two Terex Articulated surface haul trucks, since its declaration. The Government of Papua New Guinea ended the COVID-19 State of Emergency on June 16, resulting in a further easing of some of the restrictions, particularly around domestic movement.

“The equipment joins a significantly expanded and modernised fleet since the decision to proceed with the Stage 2 Expansion on March 13, 2019,” K92 said.

Back in January, the company said it expected a Sandvik DS421 cable bolter to arrive this quarter, alongside a modular batching plant. The company said earlier this month that this unit (pictured), as well as three new and high powered diamond drill rigs were in transit to the mine.

Twin incline activities have recently recommenced at Kainantu with the easing of restrictions from the state of emergency. Ground support for the portal is also underway, with portalling and the installation of steel sets expected to commence in the first half of the September quarter, the company said.

The process plant, meanwhile, has achieved multiple daily throughput records during the June quarter, significantly exceeding the 200,000 t/y, or circa-550 t/d nameplate capacity, with over 700 t/d achieved on multiple occasions.

“The strong performance of the process plant and underground mine to date are expected to result in gold-equivalent production exceeding March quarter output,” the company said.

The March quarter saw K92 produce 19,240 oz of gold, 339,993 lb (154 t) of copper and 6,937 oz of silver for a total of 19,934 gold-equivalent ounces, representing the second highest quarter on record. Gold-equivalent production in 2019 was 82,256 oz, with 115,000-125,000 oz of gold-equivalent scheduled in 2020.

Preparations are also being made to recommence Stage 2 process plant commissioning in the near term, to double plant throughput capacity to 400,000 t/y. All the equipment is installed, and commissioning is expected to commence in first half of the September quarter, with completion targeted at the end of that three-month period, K92 said.

John Lewins, K92 Chief Executive Officer and Director, added that a Stage 3 Expansion preliminary economic assessment is planned for July.