African Mining October 2019 | Page 18

 GLOBAL NEWS Safety always remained at the core of the project, so conditions were monitored, and the transportation was slowed down if required. To overcome the heavy snowfall and ice, specialist vehicles had to be brought in to clear the snow and applied substances to de-ice the roads. PERU: GREAT PANTHER’S BULK SAMPLE POSITIVE Great Panther has approved a positive production decision for its 100%-owned Coricancha gold-silver-lead-zinc-copper mine in Peru. The decision was based on the final results of the trial stope and bulk sample program (BSP), which confirmed the key operating assumptions for Coricancha contained in the Preliminary Economic Assessment (PEA). "We are pleased with the results of the BSP and look forward to advancing Coricancha towards commercial production," says James Bannantine, president and CEO of Great Panther. "The actual restart date is expected in the first half of 2020 and will be aligned with our other mining operations to ensure the project has the necessary planning and resources in place to optimise operations and profitability. Coricancha is expected to produce approximately 40 000 gold equivalent ounces annually and will be an important addition to Great Panther's production portfolio going forward, Bannantine adds. MONGOLIA: RIO RECONSIDERS MINE DESIGN Enhanced geotechnical information and data modelling at mining giant Rio Tinto’s Oyu Tolgoi underground gold and copper mine in Mongolia suggests that there may be some stability risks identified with the approved mine design. According to Stephen McIntosh, group executive, growth and innovation at Rio Tinto, a number of other design options are under consideration to complete the project. “Studies to date indicate that these options may result in some of the critical underground infrastructure, such as the mid-access drive and the ore handling system, being relocated or removed. Options relating to the sequence of crossing the panel boundaries during mining operations are also being analysed,” says McIntosh. These options are being evaluated to determine the final design of the first panel of mining, ‘Panel 0’, and this work is anticipated to continue until early 2020. Given the further technical work which is needed, the Definitive Estimate, which will include the final estimate of cost and schedule for the remaining underground project, is now expected to be delivered in the second half of 2020, reflecting the preferred mine design approach. All options under consideration present a pathway to sustainable first production, and have different cost and schedule implications. To date, these have been defined to a level of accuracy associated with a Conceptual Study or Order of Magnitude Study, and, therefore, significantly more work is required to complete the final assessment. 16  African Mining  October 2019 Preliminary information now suggests that, depending on which mine design options are adopted, first sustainable production could be achieved between May 2022 and June 2023, a delay of 16 to 30 months compared to the original feasibility study guidance in 2016. This range includes contingency of up to eight months, reflecting the unexpected and challenging geotechnical issues, complexities in the construction of shaft 2 and the detailed work still required to reach a more precise estimate. “The ground conditions are more challenging than expected and we are having to review our mine plan and consider a number of options. Delays are not unusual for such a large and complex project, but we are very focused as a team on finding the right pathway to deliver this high value project,” says McIntosh. “Oyu Tolgoi is a world-class ore body and a world-class business that is already producing copper, employing about 16 000 people and benefitting Mongolia through taxes, royalties and significant procurement. The Project continued to progress in 2019 towards its path to become one of the largest copper mines in the world. Since February, key below ground infrastructure such as the control room facility and the jaw crusher system are now complete and construction of shafts 3 and 4 is progressing well. The commissioning of shaft 2 remains on track for October 2019. AUSTRALIA: GOVERNMENT APPROVES 100-YEAR-PLAN BHP’s ambitious expansion proposal for the Pilbara over the next century has been given approval by the Western Australian Government. The 50- to 100-year strategic mining proposal outlines bold plans for new and existing mines within the region, alongside a vision to create tens of thousands of jobs in the state. BHP’s proposal details the mining giant’s strategy across the Pilbara, including mining operations, rail, storage areas, dams and associated mine infrastructure. It also looks to facilitate a more ‘holistic view’ of mining activities in the region by identifying and assessing how impacts to the environment at a landscape scale will be managed. Western Australian premier Mark McGowan said the proposal was a ‘major job-creating plan’ for the state. “It is another sign our economy is improving with the major miner taking a long- term view of its proposals in the state,” he said. The Environmental Protection Authority (EPA) has also recommended environmental approval of BHP’s strategic proposal with conditions attached. The EPA assessed the impacts to flora and vegetations, fauna, water quality and quantity, air quality, as well as social surrounds. Western Australian environmental minister Stephen Dawson said the Pilbara region held ‘immense environmental value’ and the EPA assessment ensured the proposal did not significantly impact regional environmental values. “The EPA gave BHP’s strategic proposal careful consideration, including considering the impacts to fauna, flora, surface and ground water, air quality, landforms and social surrounds,” he said. www. africanmining.co.za