Tag Archives: Sumitomo Metal Mining

Autonomous equipment commissioning ramps up at Côté gold project

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IAMGOLD has released its latest quarterly results, highlighting the significant progress it has made on its majority-owned Côté gold project in northeastern Ontario, Canada.

The company is the majority owner and operator of Côté, with the next biggest stake owned by Sumitomo Metal Mining. Côté has a mine life of 18 years, and will produce an average of 365,000 oz/y over this term. Some 236 Mt of ore will be mined, along with 568 Mt of waste, with an average processed grade of 0.96 g/t Au.

In the latest results, IAMGOLD said the project was estimated to be 85.7% complete as of the end of June. Since commencement of construction, $2.23 billion ($1.56 billion at the 70% held by IAMGOLD) of the planned $2.965 billion ($2.08 billion at 70%) of project expenditure has been incurred.

Autonomous operations have been incorporated into the Côté mine design with a focus on early operations readiness. The Autonomous Control Room equipped for Caterpillar Command for hauling was completed in mid-September and the project achieved a major milestone in January with the initial deployment of the autonomous 231 t Cat 793F CMD haul trucks working with Toromont Cat. On January 22, the mine saw the safe operation of a full load, haul, and dump cycle using autonomous dump trucks.

During the June quarter 2023, up to seven Cat 793F haul trucks have begun operating in autonomous mode and a total of 14 haul trucks have been commissioned. Autonomous drilling with two Epiroc Pit Vipers began in this quarter, with a third nearing commissioning completion. In total, the company is expected to operate six autonomous Epiroc Pit Viper 231 blasthole drill rigs, complemented by two Epiroc D65 SmartROC crawler rigs, which will be remote operation ready.

In addition it will deploy electric Caterpillar hydraulic shovels – namely two 6060FS units, AC-powered via tethered cable.

The company said owner mining has progressed well with nearly 1.1 Mt mined in the June quarter. The stockpile has approximately 2 Mt of material on track to the target build-up of 5 Mt by the end of the year. The IAMGOLD mine operations team started operating 24/7 effectively in July.

The project timeline remains in place, with production expected to commence in early 2024.

Wood to deliver EPCM contract at IAMGOLD’s Côté Gold project

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Wood, the global engineering and consulting company, has confirmed it will deliver the engineering, procurement and construction management (EPCM) contract for the $1.3 billion Côté Gold open-pit mine for operator IAMGOLD Corp, supported by JV partner Sumitomo Metal Mining.

Côté is a world-class deposit located in northern Ontario, with estimated contained gold reserves of over 7 Moz. IAMGOLD wants to develop the site to be a model of a modern Canadian mine as it seeks to efficiently unlock the reserves, with Wood providing EPCM services for the project. This project is anticipated to generate over 1,000 jobs during construction and 450 during operations.

Dave Lawson, President, Mining & Minerals at Wood, said: “This project strengthens our relationship with IAMGOLD as a trusted full life cycle delivery partner and it solidifies Wood’s position as a global leader in the development of gold mines.

“Beginning with work on the initial scoping study in 2011, we have worked closely with IAMGOLD to guide the project toward successful execution, helping to identify more than $450 million of improvements in net present value. We were able to do so because of our unrivalled expertise in gold extraction technology having worked on some of the largest and most technically complex gold projects in the world.”

Over the last eight years, Wood has been working with IAMGOLD in every aspect of the project, adding, it says, value at every stage with innovative design and project delivery solutions. Wood’s latest scope of work includes engineering, procurement and construction management for the 36,000 t/d conventional gold processing plant, tailings and water management.

Gordon Stothart, President and CEO of IAMGOLD, said: “We are pleased to move to construction on the Côté Gold Project with our long-time engineering partner Wood. We look forward to bringing this project from concept to reality with their team.”

The Côté project is expected to expand IAMGOLD’s production profile for future growth, by bringing greater geographic diversity and a reduction in costs – enabling sustainable reserve growth and supply stability as demand factors shift in an uncertain environment, Wood said.

Construction of the gold mine commenced in late 2020, and is expected be completed in mid-2023. It is expected to leverage both autonomous drilling and haulage technology.

IAMGold weighs autonomous drilling, haulage at Côté gold project

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IAMGold has provided an update on its majority-owned Côté gold project in Ontario, Canada, which included confirmation of a key approval and the mention of studies on implementing autonomous haulage and drilling technologies.

The late 2018 feasibility study on the project demonstrated its potential to produce 460,000 oz/y of gold at all-in sustaining costs of around $700/oz for the first six years of a 16-year mine life.

It said this week that the project has received approval for its application under Section 36 of the Fisheries Act (Canada). This is a key milestone in attaining permits relating to impacts on fish habitats and tailings management, according to the company.

Since the feasibility study was published in late 2018, IAMGold says it has been very active in “de-risking” the project.

As of the end of May, the company says it has:

  • Completed additional resource and geotechnical studies, and advanced mine planning;
  • Completed over 60% of detailed project engineering, including the tailings facility;
  • Following this level of engineering, obtained firm bids and secure prices on all major equipment. To date, 55% of project cost has firm pricing, further reducing technical and cost risks for the project leading to a refinement in costs and metrics as IAMGold works toward a construction decision;
  • Completed a pre-construction camp on the adjacent Chester site;
  • Completed all tree clearing needed for initiating construction – work was carried out with a First Nations partner firm earlier in 2020, before standing down in respect of the COVID-19 pandemic;
  • Carried out detailed implementation studies on technology, including automated truck haulage and drilling, and commenced discussions with regulators regarding the use of automated equipment;
  • Advanced development of construction protocols in consideration of COVID-19; and
  • Completed 4,700 m of drilling at the Gosselin Zone, a potential satellite pit 1.5 km northeast of Côté.

The company has also signed Impacts and Benefits Agreement with First Nations partners, approved the Environmental Assessment and Closure Plan, and advanced permitting.

The 2018 feasibility study envisaged a truck-shovel operation, assuming 220 t autonomous trucks and 34 m3 shovels, and a 36,000 t/d mineral processing circuit incorporating primary crushing, secondary crushing, tertiary high pressure grinding roll crushing, ball milling, vertical stirred milling, gravity concentration and cyanide leaching, followed by gold recovery using carbon-in-pulp, stripping and electrowinning.

Gordon Stothart, IAMGold President and CEO, said: “A key part of the future of IAMGold is our organic growth pipeline, starting with the Côté Gold Project in northern Ontario.

“The transformative impact of Côté Gold on IAMGold’s production profile and global cost structure, in addition to its long mine life in an attractive jurisdiction, establishes clear and compelling reasons for this project to proceed.

“Our current financial position supports our proposed growth plans, with over $800 million in cash on hand, access to a currently undrawn $500 million committed revolving credit facility, and expected stronger operating cash flows from our current mining operations, including anticipated contributions from Saramacca at Rosebel and steady performance from Essakane and Westwood.”

A formal decision on the construction of the Côté Gold Project will be made in conjunction with IAMGold’s partner, Sumitomo Metal Mining, given a satisfactory environment for construction to proceed with appropriate work protocols in light of COVID-19 and without risk of interruption.

IAMGold said: “The company is currently working with SMM toward a formal decision. A decision in the coming months would allow construction to commence later this year with a targeted completion date of mid-2023.”

Metso keeps Sierra Gorda analysers on stream

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Metso says it is continuing to deliver a significant performance solutions contract at KGHM’s majority-owned Sierra Gorda copper-molybdenum mine, in Chile.

The services provided include preventive maintenance and calibration of Sierra Gorda’s eight on-stream analysers. The particle size analysers and chemical composition analysers, which are a core portion of the mine’s flotation process, play a vital role in controlling and optimising process performance, according to Metso.

As part of this agreement, Metso’s responsibilities include performing maintenance of the sample handling system, as well as the maintenance and calibration of the analysers. The two-year contract, which commenced in February 2019, includes daily, weekly and monthly tasks as well as stringent key performance indicators, it said. In this performance contract, Metso is evaluated on the ability to increase uptime and measurement accuracy.

Sierra Gorda is a joint venture project currently controlled by KGHM Polska Miedź SA (55%), Sumitomo Metal Mining (31.5%) and Sumitomo Corp (13.5%). Mining processes include ore blasting, loading and transport by haul trucks to a processing plant with an average throughout of 110,000 t/d of ore, where it is subjected to crushing and grinding processes. A plant with molybdenum concentrate separation is used for ore flotation.

Edgardo Chiappa, Plant Manager, Sierra Gorda SCM, KGHM Polska Miedz & Sumitomo Joint Venture, said: “The service provided by the Metso team demonstrates true professionalism, collaboration and teamwork. They have delivered high availability and accuracy of our on-stream analysers, consisting of Courier and PSI technology (both Outotec products). This has allowed for more timely operational decisions, aiding us in maximising process performance.

“We are really satisfied with the work Metso has delivered and look forward to our continued partnership.”

Giuseppe Campanelli, President, Minerals Services, Metso, said the company was proud to have had the opportunity to not only continue, but deepen, its partnership with Sierra Gorda.

“We greatly value this relationship as well as the confidence that they have shown in our ability to service such a key piece of their process,” he said.

Metso has been systematically expanding its service offering in the Chile and Pacific Rim mining markets, with the service organisation’s ability to deliver and sustain performance improvements within the mining industry based on this additional focus on maintenance, technology and process expertise.

CRC ORE welcomes Metso to the fold

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The Cooperative Research Centre for Optimising Resource Extraction (CRC ORE) says it has officially welcomed industrial equipment and services provider Metso as its newest participant.

Earlier this year, Metso joined a select cohort of Australian and international mining, equipment, technology and services (METS) participants to assist CRC ORE to achieve its goals.

“Since its origins 150 years ago, Metso has provided equipment and services for several industries, including mining, and is at the forefront of the supply of technologically advanced mining equipment,” CRC ORE said.

Metso Vice President of Innovation LAB, Lars Grönvall, said that the work of CRC ORE closely aligns with Metso’s vision of being the best choice for sustainable processing of natural resources.

“Metso’s cutting-edge services and solutions improve availability and reliability in minerals processing and flow control, providing sustainable process and profit improvements,” Grönvall said.

“We are excited by what can be achieved by partnering with CRC ORE and its high-quality participants in developing solutions to more efficiently separate valuable ore from waste material as early as possible in the mining process.”

CRC ORE Chief Executive Officer, Ben Adair, has previously worked closely with Metso, in areas including process control and concentrator equipment application, according to CRC ORE.

Adair said he was encouraged by the commitment of the major European company to improve the productivity, energy and water signatures of mining operations.

“Now well into our second term at CRC ORE, we appreciate the support given by specialist equipment provider Metso and the expertise they bring as a participant,” Adair said.

“In their short time so far as a participant, Metso has made a valuable contribution through the supply of one of its Locotrack mobile screening units (pictured) to support a major production trial of grade engineering at Sumitomo’s Minera San Cristóbal mine in Bolivia.”

Adair said that CRC ORE worked with Minera San Cristóbal to use off-the-shelf equipment from Metso to support this innovative site trial, helping to minimise the complexity and cost of the project.

“CRC ORE aims to drive collaborations such as this to help deliver positive change across the mining industry,” he said.

CRC ORE is a cooperative research centre focused on optimising resource extraction. It delivers value to Australia by improving mine productivity, commercial return and environmental outcomes, CRC ORE says.

Established in 2010, CRC ORE has made significant progress in rapidly developing and integrating technology from concept to implementation, it says. CRC ORE uses innovative methodologies to develop new technology, or repurpose existing technology, often from outside the mining industry, to significantly reduce the time from prototype to production scale application.

Teck’s QB2 copper project in Chile moves forward to construction

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Teck Resources has approved construction of the Quebrada Blanca Phase 2 copper project in the Tarapacá Region of northern Chile after Sumitomo Metal Mining (SMM) and Sumitomo Corporation agreed to help fund the development in return for a 30% indirect interest.

The transaction with SMM and Sumitomo Corp will see the two companies pay $1.2 billion for a 30% interest in Compañia Minera Teck Quebrada Blanca SA (QBSA), which owns the QB2 project. This will be comprised of an $800 million earn-in contribution and a $400 million matching contribution. On top of this $50 million will be paid to Teck upon QB2 achieving an optimised target mill throughput of 154,000 t/d by December 31, 2025, subject to adjustment.

Don Lindsay, President and CEO of Teck, said QB2 was one of the world’s premier undeveloped copper assets, with this transaction further confirming the value of the project.

“This partnership significantly de-risks Teck’s investment in the project, enhances our project economics and preserves our ability to continue to return capital to shareholders and reduce bonds currently outstanding.”

The $4.74 billion project is expected to produce 316,000 t/y of copper-equivalent for the first five full years at all-in sustaining costs of $1.38/Ib ($3,043/t). The initial mine life of 28 years uses less than 25% of the current reserve and resource. Based on a $3/Ib average copper price over the life of the mine, QB2 is expected to provide a net present value (8% discount) of $2.43 billion.

The mine is expected to use “demonstrated industry-leading technology to enhance safety, productivity and sustainability, including an integrated operations centre located in Santiago, autonomous haulage fleet, and the first large-scale use of desalinated seawater in the Tarapacá Region to eliminate freshwater use in operations”, Teck said.

The company added that it was positioned for project construction with a strong and experienced execution team in place, major permits in hand, engineering nearly 80% complete, and contracting and procurement well advanced.

Lindsay said: “QB2 will be a long life, low-cost operation with major expansion potential, including the option to double production or more, to become a top-five global copper producer.”

This expansion potential is expected to be shown off with the completion of a scoping study to assess QB3 development options.

The social and environmental impact assessment for the QB2 project was approved in August and early field work commenced in September.

The project scope includes the construction of a 143,000 t/d concentrator and related facilities, which are connected to a new port and desalination plant by 165 km concentrate and desalinated water pipelines.

Teck has agreed with SMM and SC to cover their share of the cost of power under the existing power purchase agreements in excess of QBSA’s needs until the earlier of the startup of the first grinding line in the mill or September 30, 2022. The target date for project completion and the start of commissioning and ramp up is the December quarter of 2021. Full production is expected in the middle of 2022.

The project will build on the existing Quebrada Blanca copper mine, which produced 23,000 t of copper last year and is expected to stop producing cathode in mid-2019 as the supergene deposit is exhausted.

After the transaction is completed, the ownership of QBSA will be as follows: 60% Teck, 30% SMM/SC, 10% Enami.