Tag Archives: Subika

More XE underground loaders on the way, Caterpillar says

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Having additional success selling underground loaders to mining customers, Caterpillar is gearing up to release more machines that leverage that same “architecture” technology as the Cat® R2900 XE diesel-electric LHD, Mike Berry, Vice President and General Manager of Load and Haul for Caterpillar, says.

The diesel-electric R2900 XE is built on the R2900G’s platform, Caterpillar’s most popular underground loader. It features optimised lift arm and component geometry plus load-sensing hydraulics to improve breakout force by 35% over the R2900G, Caterpillar states.

The 18.5-t payload R2900 XE features a switch reluctance electric drive system alongside a Cat C15 diesel engine, which offers up to 335 kW of power. Caterpillar says the machine comes with about 30% increased fuel efficiency compared with the R2900G, with its lower engine revolutions per minute resulting in reduced fuel burn, heat, noise, vibration and exhaust emissions.

These traits have, so far, gone down well. In Australia, there are units at mines owned by Gold Fields, Westgold Resources and MMG. Newmont recently confirmed an order for nine R2900 XEs to the Subika gold mine, in Ghana, while Centamin also added at least one of these LHDs to its underground fleet at Sukari, in Egypt. In Canada, Alamos Gold recently purchased two of these machines for its Young-Davidson mine, while Cementation Americas added the diesel-electric machine to its roster, deploying it at New Gold’s Rainy River project in Ontario, Canada.

Speaking to IM at MINExpo 2024, in Las Vegas, in September, Berry said that the company planned to build on this momentum with more models set to join the platform.

“Similar to rolling out this technology from the surface with the 988 XE wheel loader to this machine [the R2900 XE], yes, we plan to take that technology up and down the underground loader product line,” he said.

Berry’s colleague, Paul Bitter, Product Value Stream Manager at Caterpillar, said the architecture of the XE platform – which also includes a battery-electric loader in the form of the R1700 XE – leaves a “great degree of freedom from a design perspective both for hauling and loading”.

He added: “We see it as platform for loaders and trucks, where, because of the electric drive, you can change power source. This means you can have a diesel machine, a hybrid machine or a fully electric machine.”

The most likely haulage and loading candidates for the ‘XE treatment’ are machines that currently only come in diesel form, have not recently been updated and have large populations out in the field.

On the theme of hybridisation, Berry said the company had no plans to combine the electric drivetrain with a small diesel energy and an on-board energy storage element for load and haul equipment. He and colleague Thad Litkenhus, Director of Product Management at Caterpillar, did raise the prospect of a form of the Dynamic Energy Transfer (DET) solution currently equipped for surface haul trucks being converted for underground use, however.

Designed to both transfer energy to large mining trucks, as well as charge a machine’s batteries while operating with increased speed on grade, the system “provides the industry with options to support both near-term and long-term sustainability strategies”, Caterpillar says.

Litkenhus added: “We define hybrid as having multiple energy sources and, if you think about the fundamental notion of a DET system, that is effectively a hybridisation of your machine to bring more energy to the machine. It just happens to be an off-board one.

“We actually think such a combination could provide the hybrid element that diversifies the power source without any drawbacks that come with having it all happen on board the machine.”

Perenti’s AUMS extends ties with Newmont at Subika Underground

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Perenti Limited’s African Underground Mining Services (AUMS) subsidiary, through its UMA joint venture, has been awarded a new, circa-A$630 million ($418 million), 60-month contract at the Newmont Subika underground gold mine in Ghana, the ASX-listed company says.

The term of the contract is effective from January 1, 2023.

UMA is a joint venture (70:30) between AUMS and Rocksure International, a local Ghana-based civil and mining contractor. Under the terms of the contract, through the UMA joint venture, Perenti will undertake all underground development and production activities, diamond drilling and associated support services at the Subika Underground Mine, some 310 km to the northwest of Accra, Ghana.

In addition, under the terms of the new contract Newmont will acquire the current fleet of underground equipment associated with the project and will also be responsible for the acquisition of additional fleet as required for the project, Perenti says.

Perenti expects that this capital strategy will have significant benefits, but primarily will reduce the capital intensity of the project while still delivering strong returns. Perenti expects to finalise the sale of these assets before the end of June.

As a part of Newmont’s larger Ahafo complex, AUMS commenced development and production activities at the Subika underground mine in mid-2017.

Mark Norwell, Managing Director and CEO of Perenti, said: “With this new contract, Perenti not only expands its tenure in Ghana but furthers its relationship with Newmont, the world’s leading gold company with a world-class portfolio of assets in favourable mining jurisdictions. We are very pleased that we will continue to deliver value and certainly to Newmont and our other stakeholders in Ghana and beyond.”

Paul Muller, President Contract Mining of Perenti, said: “Ausdrill commenced operations in Ghana in 1991 and, with this 60-month contract, Perenti through its subsidiaries, will have accumulated nearly 40 years of in-country expertise with a strong track record of prioritising local procurement, training and employment opportunities across a wide range of local and regional Ghanaian stakeholders.”

Newmont Goldcorp delivers the hat-trick with Ahafo mill expansion

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Newmont Goldcorp has announced that the Ahafo mill expansion in Ghana achieved commercial production, on schedule and within budget for around $175 million.

Combined with the Subika Underground operation, which was successfully completed in November 2018, the mill expansion is expected to increase Ahafo’s average annual gold production to between 550,000-650,000 oz/y through 2024, while lowering life-of-mine processing costs.

“The Ahafo mill expansion represents our third profitable project delivered on schedule and within budget in 2019, along with the Tanami power project in Australia and the Borden mine in Canada,” said Tom Palmer, President and Chief Executive Officer. “The mill expansion is expected to generate an internal rate of return of more than 20% at a $1,200 gold price, while also extending profitable production at Ahafo through at least 2029.”

Features and benefits of the mill expansion include:

  • Increasing mill capacity at Ahafo by more than 50% to nearly 10 Mt/y with the addition of a crusher, grinding mill and leach tanks to the circuit;
  • Adding annual gold production of 75,000 to 100,000 oz/y for the first five full years beginning in 2020;
  • Accelerating efficient processing of ore from stockpiles and the Subika underground mine, as well as harder, lower-grade ore from Ahafo’s existing pits; and
  • Supporting profitable development of Ahafo’s highly prospective underground resources, which continue to demonstrate considerable upside.

Ahafo is expected to deliver record production this year – with improved costs – driven by higher grades from the Subika open pit, a full year of mining from the Subika underground mine and the completion of the Ahafo mill expansion.

Commercial production began at Ahafo in 2006, and, in 2018, the operation sold 436,000 oz of gold at all-in sustaining costs of $864 per ounce.

Newmont Goldcorp Ahafo expansion project produces first ore

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Newmont Goldcorp says the Ahafo Mill Expansion (AME) project in Ghana has successfully processed its first ore and is on track to achieve commercial production in the December quarter of 2019.

The mill expansion will increase average annual gold production at the Ahafo mine by between 75,000-100,000 oz for the first five years, beginning in 2020, with mill capacity expanding by more than 50% through the addition of a crusher, grinding mill and leach tanks. It is expected to deliver an internal rate of return of more than 20% and, together with other projects at Ahafo, extend profitable production through at least 2029.

Tom Palmer, President of Newmont Goldcorp, said: “Combined with Subika Underground, which was successfully completed in November 2018, the mill expansion will increase Ahafo’s production to between 550,000 and 650,000 oz per year through 2024, while lowering life-of-mine processing costs.

“The project also accelerates the efficient processing of stockpiled ore and supports profitable development of Ahafo’s highly prospective underground resources, which continue to demonstrate considerable upside.”

In 2019, Ahafo is expected to achieve record production – with improved costs – driven by higher grades from the Subika open pit, a full year of mining from the Subika Underground and the completion of the AME. Capital costs for the AME are estimated at between $140-180 million. Commercial production began at Ahafo in 2006 and, in 2018, the operation sold 436,000 oz of gold at all-in sustaining costs of $864/oz.

Over the last six years, Newmont has successfully built 11 new mines, expansions and projects on four continents – on or ahead of schedule and at or below budget. These projects include Akyem and the Phoenix Copper Leach in 2013, the Turf Vent Shaft in 2015, Merian and Long Canyon in 2016, the Tanami Expansion in 2017, and Twin Underground, Northwest Exodus and Subika Underground in 2018, and the Tanami power project in 2019. The company also completed a value-accretive acquisition of Cripple Creek and Victor in 2015 and delivered a profitable expansion at the mine in 2016.

Newmont Goldcorp sees value in expanding process control support hub

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Newmont Goldcorp says it plans on expanding its Process Control Operations Support Hub globally following a successful pilot project launched in Australia, in 2018.

The company will start the expansion in Ghana, where its Ahafo, Akyem and Subika mines reside, but expects full implementation in 2020, it said.

The Process Control Operations Support Hub pilot project was launched in 2018 with a mandate to streamline process control systems, procedures and monitoring tools, the company said.

“Thanks to the teamwork and collaboration of our Boddington team, the pilot project was a great success, demonstrating the need for process control support and the value of the project’s innovations,” the company explained. “We learned that the operational support hub model accelerates the advanced process control value at our sites and allows for knowledge and expertise to be targeted in a cost-efficient way.”

The company also found that the demand for operations support hubs was higher than expected, and that introducing this support model would help drive improvement at its sites.

In line with the company’s Full Potential program’s mandate to identify opportunities for efficiency and innovation across our business, the support hub has added $2.8 million in what the company calls “Full Potential value” to date, Newmont Goldcorp said.