Tag Archives: Russia

VIST working on autonomous drilling project with SUEK

VIST Group (a subsidiary of Zyfra Group) has started developing unmanned drilling technology using an Epiroc Pit Viper 271 for SUEK’s Tugnuysky open-pit coal mine in Buryatia, Russia.

The new system is intended to minimise the number of employees involved in hazardous and dangerous work, while maintaining or even reducing drilling costs, VIST said.

The drill rig will have a pre-set for independent performance of most operations usually performed manually by the operator. It will be furnished with additional functions: motion control, environment scanning (including the possibility of remote presence), automatic testing of the installed equipment, high-precision positioning and emergency shutdown, as well as two-way data transmission, VIST said. At the same time, manual control from the cabin will still be possible in normal mode.

The equipment installed on the rig will include a system of environmental scanning sensors (short- and long-range radars, 3D light identification detection and ranging device) to ensure early detection of any obstacles, bunded areas or cliff edges, and will prevent collisions. A multi-level automatic testing system will prevent the failure of various elements, according to VIST.

The controller will monitor the status of the assemblies and the connection to the server, and compare the data from different subsystems. The server will check the stability of communication with all elements and compare the data received from them.

VIST said: “It is anticipated that this innovative solution will significantly improve operational safety and efficiency in the Siberian mines, which rank among the world’s largest coal mining centres.

“Thanks to the new technology, it will be possible to move drills independently or in remote mode along the stack, drill shafts, assemble and dismantle the drilling assembly and level the platform. An algorithm will be used to determine the optimal sequence of drilling the shafts, taking into account their relative position and type of rock mass.”

The system will operate as follows: The drill operator will move the equipment to the required stack in manual mode. Another employee will then remotely set a drill plan for the rig in this area and engage the independent operation mode. At the same time, the system’s built-in safety algorithms will control the drill’s movement, taking note of the equipment and employees performing auxiliary work in the area. Personnel operating near the drill will be equipped with an emergency shutdown device, which, if necessary, will immediately stop the robotic equipment.

The operator will exercise remote control from his computer workstation located at the enterprise and, if necessary, will be able to quickly take control of the equipment during any process operation, such as in the event of complex non-standard situations. In this case, the digital system will actively help the human operator, warning of potentially dangerous factors while displaying the status and additional information.

Specialists will be able to remotely control the engines, compressors and controllers, moving, turning, mast raising and lowering mechanisms, assembly of the drilling unit, the braking system, drilling itself, etc. In addition, the dispatcher will deal with security issues such as the admission of equipment and people to the automated site.

“In general, however, the human role will be minimised, and if any intervention is required this will only be in rare specific cases,” VIST said.

“The automation systems themselves will cope perfectly well with the tasks. Satellite navigation and special drill control programmes that are activated when directly approaching a specific location will provide incredible pointing accuracy of up to 10 cm. The system will also develop routes for the drill’s movement between the wells, paying great attention to the optimal path and the absence of unnecessary actions and thereby minimising costs.”

The drill, without the intervention of personnel, will be able to level the platform and the mast independently with an accuracy of 1° in two planes, based on two-axis inclinometer readings, processing current data and generating commands to the alignment mechanisms on the basis of this data. Digital control of these mechanisms will be provided, and depending on their design, it will be possible to use mechanical actuators, electrical or control signals through the standard CAN industrial network.

A number of subsystems and algorithms will be created for independent drilling, according to VIST. In particular, a set of sensors for monitoring parameters (feed forces, rotation forces and speeds, gas-water mixture pressure, depths, etc) will be installed in the equipment, as well as a subsystem based on actuators and feedback sensors for assembly build-up and dismantling.

The robotic drill will fit into the enterprise’s existing data environment, VIST said. The existing MTC Karier management system will handle fuel consumption metering and reporting issues, with the newly developed solution becoming part of the Intellectual Karier system. This will make it possible in future to centralise control over several drills simultaneously, including simultaneous operation of these rigs in the same stack.

The company said: “VIST Group has no doubt that the automated solution being developed will prove its economic efficiency during the planned pilot operation and will significantly increase the safety of production processes.

“As we speak, experts are ascertaining the possibility of deeper digitalisation and more advanced operation of the enterprise, addressing all the challenges and tasks dictated by the new industrial revolution that is taking place before our eyes.”

Outotec to help expand JSC Stoilensky GOK iron ore pelletising plant

Outotec says it and Russia iron ore pellet producer JSC Stoilensky GOK (S-GOK), which is a part of NLMK Group, have entered into a contract to expand S-GOK’s pellet plant located in Stary Oskol, Russia.

The approximately €15 million ($16.9 million) order has been booked in Outotec’s 2019 March quarter order intake, it said.

Outotec previously delivered the technology for S-GOK’s pellet plant, which has been in operation since 2017, but this latest contract will see the plant’s annual capacity go from 6 Mt to 8 Mt.

Outotec will be responsible for the engineering, supply of key equipment and automation system as well as advisory services for installation and commissioning of the expansion.

The company said its latest technology improvements in green pelletising, cooling air process, and pallet car changing system will be applied, together with a digital solution package. The deliveries will take place at the end of 2020.

Additionally, in 2019-2021, NLMK said it plans to boost ore production and beneficiation capacity by 14% via upgrades of Stoilensky’s other transformation stages with a view to ensuring stable supply of raw materials to the pelletiser after it reaches the output of 8 Mt/y. This will enable the company to increase its ore processing capacity from 37 Mt/y to 42 Mt/y and to increase its concentrate output from 17.3 Mt/y to 20 Mt/y.

Kalle Härkki, Head of Outotec’s Metals, Energy & Water business, said: “We are excited about continued cooperation with S-GOK and the delivery of our latest technology improvements and digital solutions to this project. With intelligent services, applications and equipment we ensure safety, predictability and optimal performance of the plant, and S-GOK will get the best value from their assets.”

Konstantin Lagutin, NLMK Group Vice President, Investment Projects, said Outotec was its long-standing and reliable partner, “with whom we successfully implemented Europe’s largest pelletising plant in Stary Oskol”.

“The new expansion project is an important element of our Strategy 2022, aimed at meeting our growing raw material needs as well as increasing efficient steel production,” he said.

Eurasia secures Sinosteel EPC finance package for Monchetundra palladium project

Eurasia Mining says it has signed an engineering, procurement and construction (EPC) contract, with an associated mine finance package, for its Monchetundra PGM-gold-copper-nickel project, in Russia.

The contract with China’s Sinosteel follows ongoing discussions between the two parties, which have been taking place since issue of the mining permit for a circa-2 Moz (two platinum group metals and gold) deposit in November 2018.

Monchetundra has 1.9 Moz of palladium-led reserves and resources with platinum, gold, copper and nickel.

Sinosteel said: “We are delighted that Terskaya Mining Company, controlled by Eurasia Mining plc, has received the final mining permit for the Monchetundra project. We look forward to working with CKE (Central Kola Expedition – a contractor), TGK (Terskaya Gornaya Kompany) and Eurasia, to commence the EPC and develop the mine and plant at this exciting palladium, platinum, copper and nickel project.”

Christian Schaffalitzky, Chairman at Eurasia, said: “We are delighted to advance the Monchetundra project. The details include not only the engineering components, but also the financing and legal documentation. We will be busy over the coming months developing our plans with Sinosteel for the mine’s start up and expected move towards production.

CKE, Eurasia’s long standing working partner at Monchetundra, were recently awarded and have now commenced work on a detailed project report, required to be submitted and approved within one year of the issue of the mining permit. This contract was awarded to CKE by Eurasia’s subsidiary TGK.

Eurasia said: “The report will include an outline of the further geotechnical, hydrogeological, metallurgical and resource and reserve base work required as part of the broader mine development plan. The report is a statutory requirement and is on track to be completed and approved.”

The ground works and other studies detailed within the report will then contribute to a more detailed feasibility study of permanent conditions and a revised reserves statement made on the basis of the existing feasibility study and the reserves report already approved by the state.

“It is Eurasia’s intention to fast track the above and to run them in parallel with further mine studies and programmes as outlined in the EPC contract with Sinosteel,” the company said.

The Sinosteel EPC financing covers 85% (or $149.6 million) of a total contract value of $176 million. A $50 million sub-contract is specified within the contract and is assigned to Eurasia’s 80% subsidiary TGK, or a sub-contractor of its choosing, for engineering and pit development works in advance of mining.

ALROSA weighs up restoration and closure options at Mir underground diamond mine

Following the analysis of several options for deposit opening and deep level development, ALROSA has laid out plans regarding restoration or full closure of the currently suspended Mir underground mine in the Far East of Russia.

ALROSA said the concept requires deep level exploration down to -1,300 m to confirm the mine’s reserves. These activities are scheduled to be completed by early 2022. Budgeted at around RUB2 billion ($31 million), this work is included in the group’s RUB28.7 billion capital expenditure programme for 2019.

Last year, the company suspended the construction of deep mine levels below the level -800 m where it was necessary to carry out works to prevent gas-dynamic phenomena recorded there, ALROSA said.

Based on the results of the exploration works, pilot holes will be drilled to start preparation of deposit opening design documents (within one to two years). This work is to be completed before 2024.

“Simultaneously, the company will carry out conceptual design activities to ensure water disposal at the mine and choose the best mining technology as well as ventilation and gas safety options,” ALROSA said.

If it is decided that the restoration of the Mir underground mine is feasible, the construction is estimated to take six to eight years.

“In summary, Mir mine restoration can start no earlier than 2024 and only if the studies yield positive results, and if it is confirmed that construction and mining can be done with the highest level of occupational safety,” ALROSA said.

“ALROSA’s decision about further development of this mine will be based solely on safety considerations and economic viability.”

Terex Trucks lays groundwork for Russia expansion with Mining Eurasia pact

Terex Trucks has signed Mining Eurasia as its new official distributor in the Russian Federation as the Scotland-based manufacturer looks to improve availability as well as return on investment for its customers in the region.

The company said: “As the single largest country in the world, it’s no great surprise that Russia has an abundance of coal, metal and minerals. In fact, it is home to 17% of all mineral deposits, 18% of all coal reserves, and produces more chromium, nickel and palladium than any other nation.”

According to Terex Trucks, this is one of the reasons why mining equipment provider Mining Eurasia has gone from “strength to strength” over the years. Now, it will be the official distributor of Terex Trucks’ TA300 and TA400 (pictured) articulated haulers in the Russian Federation.

Vladimir Startsev, Chief of Service, Mining Eurasia, said: “Russia is a tough market, with many of our customers running 24/7 operations. This firstly requires reliable equipment, but it also requires a lot of support from us.

“The harder you make machines work, the more you’ll need access to spare parts and knowledgeable technicians. We’ve always prided ourselves on the quality of our aftermarket support. This has helped us to build a strong reputation within our sector and strike up partnerships with companies like Terex Trucks.”

John Rotherford, Global Key Accounts Director, Terex Trucks, said: “In close collaboration with their (Mining Eurasia’s) team in Russia, we’ll be working together to improve availability as well as return on investment for our customers.”

Mining Eurasia has its headquarters in Moscow, along with a repair centre, four regional offices and 11 service centres situated across Russia. “The majority of our employees are dedicated service specialists,” Startsev said. “We plan to use that expertise to ensure that our customers can get the most out of their Terex Trucks machines.”

The Terex TA300 ADT is powered by a Scania DC9 engine and has a maximum payload of 28 t, maximum torque of 1880 Nm and can achieve gross power of 276 kW, according to Terex Trucks. “It is equipped with true independent front suspension as standard, resulting in excellent traction control and operator comfort,” the company said.

The TA400, the largest articulated hauler on offer from Terex Trucks, has a maximum payload of 38 t and a heaped capacity of 23.3 m³. “The Allison HD4560 transmission boasts high performance oil and up to 6,000 hours between service intervals,” Terex Trucks said.

Both machines come with hydrostatic power steering and all-hydraulic braking systems, helping to ensure a safe and comfortable ride, according to the company.

Polymetal to expand pressure oxidation gold treatment in Russia

The Board of Polymetal International has approved the expansion of pressure oxidation operations at its operations in Russia and authorised the immediate start of construction at its POX-2 project.

A recently released feasibility study on the project showed that the second POX line would meaningfully increase the value of Polymetal’s refractory reserve base, comprising approximately 55% of total ore reserves, processing concentrates from its Kyzyl, Nezhda, Mayskoye, and Voro mines.

The project is expected to generate significant economic benefits as all refractory concentrates will be retained for in-house processing as opposed to selling to third-party offtakers. It will result in the incremental production of approximately 30,000-35,000 oz/y of gold from the same amount of feedstock and will, on average, lower total cash costs by $ 100-150/oz per ounce for 500,000 oz of annual gold production, according to Polymetal.

POX-2, which is immediately adjacent to the current Amursk POX facility in Amursk, Russia, will also allow Polymetal to create capacity for treatment of third-party refractory concentrates, a market which has grown considerably in Russia and globally in recent years, it said.

The project’s base case post-tax net present value (10% discount) was measured at $112 million and factored in a $1,200/oz gold price, 65 RUB/$ exchange rate and a total of 4.3 Mt of concentrate containing 9.3 Moz of gold processed from Kyzyl, Nezhda, Mayskoye, and Voro over a period of 23 years.

Pre-production capital expenditures were estimated at $431 million and would be entirely funded out of company’s operating cash flows, Polymetal said.

The plant’s design throughput capacity would be 250,000-300,000 t/y of concentrate, depending on the levels of sulphur content. The maximum sulphide sulphur processing capacity, meanwhile, was 48,000 t/y.

“This would complement the 200,000 t/y of concentrate and 30,000 t/y of sulphur capacity of the existing Amursk POX facility,” Polymetal said, adding that the new facility would use a titanium-lined steel autoclave operating at 240˚С and a pressure of 43 bar.

Hatch Inc will be responsible for the basic engineering, detailed engineering, POX procurement support and the supply of custom-made equipment for high-pressure and acidic processing areas, according to Polymetal. Polymetal Engineering is responsible for other processing areas, general site layout, and infrastructure.

Vitaly Nesis, Group CEO of Polymetal, said: “POX-2 leverages our core technical capabilities and creates substantial value. It also fully de-risks our business model by eliminating dependence on concentrate offtake markets. Emerging trends in the global gold mining industry make POX-2 a crucial element of the company’s long-term strategy”.

Polymetal envisages the start of detailed engineering and construction in the June quarter, receipt of all permits in the March quarter of 2020, delivery of the autoclave on-site in the September quarter of that year and completion of civil construction works around a year later.

Completion of the main equipment installation is scheduled for the March quarter of 2022, followed by completion of external infrastructure and mechanical completion and start of commissioning activities in the September and December quarters of that year, respectively.

The end of commissioning and first production could take place in the September quarter of 2023, with full ramp-up by the end of that year.

POX-2 will share some of the external infrastructure (gas main, access road, water main) with the existing POX facility. Additional electricity supply will be provided via a new dedicated power line from the regional 110 kW grid, Polymetal said.

The project will include a new hydrometallurgical area (POX proper), carbon-in-leach and intensive cyanidation areas, an oxygen plant, an upgrade to the existing dry tailings facility, reverse osmosis water treatment facility, and several smaller infrastructural facilities (warehouses, maintenance areas, etc).

POX-2 is designed for processing double refractory concentrates, which contain micron gold particles encapsulated in sulphides (pyrites and arsenic pyrites) together with high concentrations of organic carbon. “High carbon content drives high sorption activity (preg-robbing) and dictates the use of high-temperature (240˚С) pressure oxidation compared with medium-temperature (200˚С) oxidation utilized at the existing Amursk POX facility,” Polymetal said.

“Pressure oxidation was selected as the most feasible processing technology for double refractory ores. It is able to achieve gold recoveries of 96% by utilising high temperatures, elevated pressure and oxygen to recover encapsulated gold, while conventional cyanidation methods would result in sub-optimal recovery rates of 20-40%. Completed metallurgical tests on Kyzyl and Mayskoye high-carbon concentrates confirm the recovery rate of 96%.”

Polymetal’s Amursk POX facility, in 2018, produced 308,000 oz of gold-equivalent from 170,000 t of processed concentrate for a 96.7% POX recovery.

Mechel’s Trade Port Posiet tests out thyssenkrupp coal storage sprinkler system

Trade Port Posiet, part of Mechel Group’s transport division (managed by Mecheltrans Management Co), has started testing specialised equipment to suppress dust at the port’s outdoor coal storage areas in Russia.

The port acquired a stationary sprinkler system for coal storage from thyssenkrupp as part of its technical upgrade investment project. This system consists of 22 automatic sprinklers that operate “as natural rain” and ensures year-round dust suppression in the production area. The system’s water discharge rate is up to 96 cu.m/h.

The first four sprinklers have been assembled, connected to a 2.9-km trunk pipeline and checked for pressure integrity, according to Mechel. After these tests, the port’s staff pronounced the first sprinkler line ready for launch. To prevent mechanical damage, the port constructed concrete safety barriers separating the sprinklers and haul roads.

The launching of the stationary sprinkler system at the port’s storage areas is the latest stage of the company’s efforts to upgrade the port’s infrastructure and reduce its environmental impact, Mechel said. It is due to be launched in the March quarter.

Mecheltrans Management Company OOO’s Chief Executive Officer, Alexey Lebedev, said: “A work zone sprinkler system is an efficient instrument widely used in specialised terminals dealing with loose goods. What is important is that the sprinkler system will be managed from a central dispatch. A special program will determine the sprinkler operating algorithm that would be the most effective in suppressing dust at any given moment.

“In addition, the trans-shipment complex’s operator will finetune the sprinkler system’s work, depending on the wind’s strength and vector, the state of handled coal and other factors. This way we will ensure accurate control of the dust suppression system.”

Trade Port Posiet’s technical upgrade project includes various ways of reducing the port’s impact on the environment. Coal is currently unloaded by railcar dumpers in a closed space equipped with de-dusting systems that rule out the chance of dust escaping into the open air. In the winter, railcars with thawed coal are moved after defrosting into the railcar dumper facility via a covered conveyor gallery. Coal transfer stations are also equipped with de-dusting systems. Conveyor lines are additionally equipped with metal galleries to protect the environment from coal dust. As coal is transferred into storage areas, it is moistened by a water dispersion system installed on stacker/reclaimers.

Mechel Group’s investments into creating a computerised terminal at Port Posiet exceed RUB4 billion ($61 million). The port’s trans-shipment capacity enables the company to export up to 9 Mt/y of coal.

Geobrugg slope stability system ups protection ante at Alrosa’s Aykhal diamond mine

Geobrugg has recently installed nails, mesh and spike plates as part of a slope stabilisation system at Alrosa’s Aykhal diamond operation in Mirninskiy Ulus, Russia.

Aykhal is in the permafrost region of Russia, a fact that comes with hazards – for two to three months of the year, rockfalls can occur as a result of melting permafrost. This makes it difficult and, potentially, dangerous for the trucks and operators that come in and out of the underground mine portal and navigate around the former open-pit mine site.

Some conventional wire mesh was widely used at the operation, until now, to safeguard the portal, according to Geobrugg. “As this mesh did not provide enough safety and has to be changed every two-to-three years, Alrosa decided to test Geobrugg state-of-the-art technology,” the company said.

For the protection solution, Geobrugg’s TITAN 40/16 nails with TECCO® G65/3 mesh and P33/50 spike plates were employed. In total, an area of 1,400 m² of mainly fractured dolomite with an unstable layer from 1.1-1.5 m was stabilised, according to Geobrugg. The installation on a 70-85º slope took one month and a Geobrugg Supercoating® was employed for corrosion protection, the company said.

Geobrugg said: “One of the challenges was the delivery of material and drilling machinery to the site: In winter time, you may use the ice road which runs along the river Lena. In the summer, material has to be delivered by ship, which takes one-and-a-half months from the European part of Russia to this site.”

Installation had to be carried out during the short period when temperatures were above freezing – mid-May to mid-September – Geobrugg said.

Eurasia and Uralmetmash agree on West Kytlim PGM-gold mining contract

Eurasia Mining has signed a mining contract for the 2019 season at its West Kytlim platinum, palladium, rhodium, iridium and gold mine in the Ural mountains of Russia.

Kosvinsky Kamen (KK), Eurasia’s subsidiary, and Uralmetmash (formerly Techstroy) have signed a pact that will see the latter carry out mining of platinum group metals and gold at West Kytlim.
Mining at West Kytlim is seasonal as the alluvial process relies heavily on running water. Work normally commences as the snow melts on site in late March or early April and proceeds until November.

The directors of Techstroy, the contractor employed at the West Kytlim mine for the 2018 season which achieved production well in excess of target (a total of 165 kg raw platinum against a targeted 100 kg), registered a new company, Uralmetmash, as a special purpose vehicle to focus on the West Kytlim.

Eurasia said the roles and responsibilities of each of the parties shall remain largely as before, with Uralmetmash responsible for pit development, mining, ore trucking, washing and disintegration, and KK responsible for concentrate upgrade, shipment of mine product and distribution of metal sales revenues.

The London-listed mining company said Uralmetmash intended to move on site immediately to prepare for mining, to include stripping of overburden and stockpiling of ore in preparation for washing, which can commence once the seasonal thaw is underway. The thaw can be expected sometime in April 2019.

The work will continue initially at the Kluchiki area, where work ended on schedule in November.

As part of the deal with Uralmetmash, the platinum revenues will be split on a 65%/35% basis, in favour of the contractor.

In the meantime, the refinery contract between KK and the Urals precious metal refinery has also been renegotiated to include an extra percent payment on the LME platinum prices (now at 98% LME, from 97% in 2018).

Eurasia Mining Executive Chairman, Christian Schaffalitzky, said: “We are pleased to be working again with the team that proved so effective during 2018. They were a very efficient operator last year, with a zero accident record, and financially motivated to develop the asset in a sensible manner.

“Furthermore, we are looking at ways to improve metal recoveries, based on the measured efficiency of the existing process flowsheet. We look forward to updating shareholders on progress and also our longer term development strategy for the West Kytlim reserves and resources before the season commences.”

Eurasia and KK personnel continue to work on an enlarged exploration programme for West Kytlim, to include the recently approved Flanks exploration licence and ensure adequate reserves are available for future mining seasons.

Work on analysis of the previous mining season’s performance has commenced and a sampling programme has been outlined for the tailings of the 2018 season. This information will be inputted to proposed modifications to the current circuit, with the possible addition of a jig to recover finer raw platinum fractions. The addition of a hopper to better control the loading of gravels to the front of the circuit, and achieve a more constant flow of material into the trommel, is also expected to improve recoveries during the 2019 season.

Polyus’ massive Sukhoi Log gold deposit gets even bigger

PJSC Polyus has reported a maiden indicated mineral resource for the sizeable Sukhoi Log gold project in Russia’s Far East, in addition to boosting the overall resource base by 9%.

Estimated resources now stand at 962 Mt, with an average grade of 2.1 g/t Au for 63 Moz of gold. Within this is 374 Mt at 2.4 g/t for 28 Moz of indicated resources.

The estimate is based on data from the verification drilling programme available at September 14, 2018, which was used in conjunction with historic drillhole data.

The company is carrying out in-fill, deep levels, flanks and other drilling at the project, in Bodaybo district, Irkutsk, with the campaign continuing until the end of 2019.

“Polyus plans to drill a total of 197,000 m, including the approximately 135,000 m drilled since October 2017. Ongoing assessment of the drilling campaign samples may result in further upgrade of the mineral resources estimate classification,” Polyus said.

As previously reported, Polyus is proceeding with studies to enable estimation by consultant AMC, in 2020, of an ore reserve estimate based on indicated resources in the 2018 estimate and estimates resulting from the 2019 drilling campaign.

Pavel Grachev, Chief Executive Officer of PJSC Polyus, said: “The continued exploration success we are achieving at Sukhoi Log is reaffirming its status as one of the best undeveloped deposits globally and a cornerstone of Polyus’ long-term development strategy.