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2005 12

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The document discusses new diamond core drilling bits and their advantages over other bits.

Atlas Copco's new Golden JET Bits are discussed, which have an increased impregnation height and efficient flushing system to make them more productive.

CVRD, Athabasca oil sands, Caterpillar, Atlas Copco, Sandvik, and the mining industry are mentioned.

December 2005

www.im-mining.com

Athabasca oil sands tough machines in arduous mines

CVRD - Growth at the worlds largest iron ore miner Loading tools the new models News from underground trackless technology

Editor and Publisher John Chadwick Email: john@im-mining.com Publishing Assistant Emma Joseph Email: emma@im-mining.com Consulting Editor Alan Kennedy Editorial Board Professor Malcolm Scoble Head of the Mining Dept., University of BC, Vancouver Don East Consultant, Denver, USA. Peter Knights Principal Research Fellow, The University of Queensland. Tuula Puhakka Senior Advisor, Mining Business, Sandvik Tamrock, Finland Pieter du Plessis CEO, Minerals & Metals Div., Bateman, South Africa. Paul Mitchell Secretary General International Council on Mining and Metals (ICMM), UK. Ed McCord Project Consultant Caterpillar Global Mining, USA Hans Fernberg Senior Advisor Atlas Copco Rock Drills, Sweden. Dr Kuntala Lahiri-Dutt Community specialist in natural resource management The Australian National University Simon Tarbutt Consultant, Santiago, Chile Design and Production Consultant Trevor Sheldon Email: sheldonmann@gmail.com Publishing Consultant Robin Peach Editorial enquiries: Tel: +44 (0)1442 870 829 Fax +44 (0)1442 870 617 Website: www.im-mining.com Advertising Sales Phil Playle email: phil@im-mining.com +44 1442 87 77 77 Advertising Production Emma Joseph Email: emma@im-mining.com Annual Subscription enquiries: Angela OReilly email: angela@im-mining.com Annual Subscription UK and Europe 160, 230 Rest of the world US$270 International Mining is published monthly by Team Publishing Ltd, 2 Claridge Court, Lower Kings Road Berkhamsted, Herts. HP4 2AF, UK Periodicals Postage Paid at Rahway NJ and at additional mailing offices POSTMASTER: send address changes to International Mining, c/o Mercury Intl. , 365 Blair Road, Avenel, New Jersey, NJ 07001. Printed by Friary Press, Dorset, UK Team Publishing Ltd 2005 IM uses, as preference, SI units throughout, so all tonnes are metric unless otherwise stated. All dollars are US unless otherwise stated
th at - Grow CVRD rlds the wo ore t iron l a rg e s miner sg tool Loadin models w the ne ound n d e rg r y from u News ss technolog trackle
www.i

CONTENTS
Volume 1 Number 4 December 2005 24 CANADAS VAST OIL SANDS RESOURCE 8 CVRD IRON ORE
The company aims to increase annual iron ore output to 300 Mt by the end of 2007

18 LOADING TOOLS
How to choose between electric and hydraulic shovels, or backhoes, or wheel loaders; examination of electric drive systems; consideration of bucket wear and more

18 & 24

Times have never been better for Canadas oil sands mines, as John Chadwick discovered. Many new projects are underway, being permitted or under consideration. Manufacturers continue to break down size barriers to provide these miners with bigger shovels and trucks

33 INNOVATION UNDERGROUND
New equipment to ensure the highest quality haul roads; different ideas for truck haulage; the latest in drilling and loading; and automation in all areas, including shotcreting

AROUND THE WORLD


4 World Prospects 15 Licence to Operate 16 Innovation Intelligence 32 Milestones 41 Mining and Metallurgical Technology (MMT) 46 Coal News 47 Tails 48 Diary

33
5 ber 200 Decem

m-minin

g.com

FRONT COVER:

sil sand in asca o Athab h machines s toug uous mine ard

Innovations in exploration Atlas Copcos new range of impregnated diamond core drilling bits Golden JET Bits are of unique design (Patents Pending), based on an extremely high, yet strong, cutting matrix, making it the most productive diamond core bit in the industry. The impregnation height of the JET bit matrix has been substantially raised, to 16 mm, making it the highest matrix on the market. This has been achieved without compromising bit cooling capacity, impairing the water flow in the flushing channels or weakening the fixture of the cast segments. The wider cutting segments and their seatings give maximum strength and stability. There are also fewer flushing channels that, together with the inner and outer grooves, produce a highly efficient flushing system around the whole face of the bit. All this makes the JET bit a true time saver, cost-cutter and productivity booster, especially involving deep holes where heavy pipe handling procedures in order to change bits can create serious downtime.
December 2005 International Mining 1

Courtesy of Atlas Copco

The Leader with John Chadwick

Mines for the world

n the few years we have spent in this century, London has very firmly re-established itself as a global centre for the mining industry. Financiers, promoters, lawyers, consultants, engineers have flocked to the British capital and now, more than ever, are building (in every sense of the word) mines around the world. To provide closer examination of this phenomenon and bring even greater activity to this burgeoning market, International Mining, a London institution itself, is proud and pleased to announce the birth of International Mining Conferences and its first conference in London Mining Capital focussing on the provision of finance to the world mining industry. International Mining Conferences has an excellent pedigree, bringing together a wealth of Londons mining expertise under its Managing Director, Peter Jacobs, the architect of global mining conferences in London. While Londons influence is felt all round the world, recent events have seen it extend its traditional power base of Australian and African developments to wider interest in South America and, in particular, to them east ranging from Eastern Europe, through Central Asia to the Far East. There are strong parallels with 150200 years ago when London and the UK was building some of the worlds vital mining industries. Mining has seen a spectacular boom on Londons AIM Market in recent years, and there is no sign yet of an end to its appetite. In the year to September there have been 51 new companies listed in the mining sector this year. The only sector showing more activity is Speciality & Other Finance with 88 new companies. High tech Software & Computer Services came third with 39 new companies, behind the sunset mining industry! Mining is a leader on AIM not just in numbers, but also in value. In September six of the AIM Top 20 (by market capitalization) were mining companies First Quantum, Bema Gold, Peter Hambro Mining, Consolidated Minerals, Highland Gold and Yamana Gold.

There were 136 mining companies listed on AIM, with a total market capitalization of 7,706 million. There were slightly more in Software & Computer Services and 200 in Speciality & Other Finance, but their respective market caps together totaled just 9,005 million. Only the 75 oil and gases companies listed on AIM in September had a higher total market cap than the mining sector, of 8,987 million. Indeed, minings performance throughout this decade has been as a leader. At the end of 2000, there were 523 companies listed on AIM, with a total market cap of 14,935 million. Just 3.25% were mining companies, and those 17 represented just 3.9% of the total market cap. In 2001, 14 new mining companies were listed, out of a total of 177, and the amount of money they raised, at 21.35 million, represented 3.6% of the total. In 2002 it was 13 new mining companies raising 47.44 million, representing 9.7% of the total. 2003 saw 17 new mining companies raise 44.66 million and then last year things really started to heat up. New mining company listings were 10% of all new listings in 2004, 36 new companies raising 229.29 million. Todays top AIM miners are working in Argentina, Australia, Bangladesh, Brazil, Canada, Chile, China, the DRC, Kazakhstan, Mauritania, Russia, South Africa, Tajikistan and Zambia, with a particular strength in Russia. Of course, AIM activity is but a snapshot of what is going on in London. The London Stock Exchange has in total, some 170 mining companies listed truly providing mining capital for the world. Mining Capital will be held June 13 to 14, Central Hall, Westminster, across the road from Westminster Abbey and the Houses of Parliament.

john@im-mining.com

December 2005 International Mining 3

World prospects

PD to expand Cerro Verde


Phelps Dodge (PD) has executed agreements for debt financing facilities totaling $450 million in connection with the expansion of the Soc Minera Cerro Verde copper mine in Peru, near Arequipa. PD is the majority owner and operator of Cerro Verde and has guaranteed a pro rata share of the project financing debt until completion of construction. The agreements permit Cerro Verde to borrow as much as $450 million to finance the $850 million expansion. PDs partners in Cerro Verde are Cia de Minas Buenaventura and Sumitomo Metal Mining and Sumitomo Corp. The expansion will allow Cerro Verde to mine a primary sulphide orebody beneath the oxide reserves currently in production. Mining of the primary sulphides is scheduled to begin in late 2006 and will increase copper production from 91,000 t to 272,000 t/y when full production is achieved.

Southern Copper is born


Southern Peru Copper has changed its name to Southern Copper. The name change reflects the wider geographical asset base achieved by its acquisition of Minera Mxico (MM), controlled by Grupo Mexico.

Andina wants to expand

WA lead mine set to reach worlds top five.


estern Australia is set to become one of the top five lead producers in the world when Ivernias Magellan lead mine, 40 km west of Wiluna, reaches full production in 2006. Officially opening the Magellan project, State Development Minister Alan Carpenter said it was WAs only pure lead mine and when fully operating, would produce close to 3% of global mine lead production. There is a strong and increasing global demand for lead, fuelled by the rapid growth of Chinas vehicle fleet and the subsequent demand for electrical-storage batteries, Carpenter said. The Phase 2 - refinery stage - of the Magellan development, due for completion in 2007, is set to further boost economic benefits to the State. The mineralization is lead carbonate and minor lead sulphate with traces of other metals in a property of 260 km2, comprising mining leases and exploration licenses. Ore throughput rate will be 1.4 Mt/y, or 4,100 t/d, once the plant is fully commissioned, producing an estimated 100,000 t of lead in concentrate in 2006. Some 60,000 t should be produced in 2005 as the mine builds up to full production levels. It is a shallow open pit operation with a strip ratio averaging 2.5:1. The deposits are friable rock requiring minimal drilling and blasting. Processing involves conventional SAG milling, flotation and concentrate drying by filter press. Refining will produce a 99.95% Pb product. Recovery is expected to average 80%, yielding a concentrate grade of about 70% Pb.

Ranger lives longer


Rio Tinto's 68.4% owned subsidiary, Energy Resources of Australia has increased total reserves at its Ranger mine by 6,285 t of contained uranium oxide. Total resources increased by 14,923 t contained uranium oxide. This results from reducing the cut-off grade from 0.12 to 0.08% uranium oxide. The additional reserves will be processed between 2011 and 2014, adding three years to the predicted operational life of Ranger.

Codelcos Andina division has presented Chile's environmental regulator Conama with a $250 million investment plan to increase throughput to 92,000t/d, from 72,000t/d. The aim is to offset lower grades and maintain current production levels. Much of the investment required will be in underground crushing and conveying facilities. BNamericas says this is the first phase of a long-term threephase investment plan that aims to expand Andina to 230,000 t/d in 2012 and 290,000 t/d in 2024. The first phase is programmed to come onstream in 2008. Andinas mineable reserves amount to 5,730 Mt grading 0.77% Cu. Andina produced 239,800t of copper and 3,000t of molybdenum in 2004.

Hamersley and RGP will expand more


Rio Tinto is to spend $1.35 billion on further expansion of wholly owned Hamersley Irons Yandicoogina mine and Dampier port in the Pilbara region of Western Australia. Yandicoogina mine will increase its capacity from 36 to 52 Mt/y at an estimated cost of $530 million. Yandicoogina was commissioned in 1998 at an initial rated capacity of 15 Mt/y. Since 1999 Hamersley has progressively increased its capacity, with the most recent expansion, from 24 to 36 Mt/y, completed in August this year. In the same week, BHP Billiton announced approval for the Rapid Growth Project 3 (RGP3) which will increase capacity at its Area C iron ore mine in Western Australia by 20 Mt to 42Mt/y. Work on the project has commenced, with initial production forecast to begin in the fourth quarter of calendar year 2007. The Board has approved capital of $1.3 billion for BHP Billitons 85% share of the project. This includes approximately $235 million of capital required to replace ageing port and rail infrastructure. The capital expenditure fully reflects

Minera Purn in second half 2006


Chiles Soc Contractual Minera Puren, a company owned by Minera Mantos de Oro (MDO) (Placer Dome and Kinross 50% each) 65% and Codelco 35%, plans to start gold and silver production from its Puren project located between 4,200 and 4,800 m above sea level and 160 km northeast of Copiapo, Atacama region, in the second quarter of 2006. This project is just 8 km from La Coipa gold and silver mine owned by MDO. Purens expenditure to build an open pit will reach some $23 million. The new operations will add two additional years to La Coipa operations. Minera Puren will mine a total of 12.2 Mt during the operation that will last just over four years. The ore will be transported in 150-t trucks to a Merril Crowe plant at La Coipa. It will be mixed with ore from La Coipa. The processing capacity of the leach operation and the Merril Crowe plant at La Coipa, is around 17,500 t/d of ore. In 2004 it produced 175,000 oz gold and 7.6 Moz silver.

SNC-Lavalin for Toromocho prefeasibility

eru Copper has commissioned SNC-Lavalin of Montreal, Canada to conduct a prefeasibility study for its Toromocho project in Peru. Charles Preble, CEO and President, said, Our hiring of SNC-Lavalin represents another important step in the development of our world class Toromocho copper project. We have been working on the project on a fast track basis and we are excited about hiring an independent firm to complete a prefeasibility study, which will include data from several other already completed independent technical studies where appropriate. We estimate that the study should be completDrilling IMC Orebody Second from the left Peru Copper Exploration Manager Mr. Angel Alvarez & far right Peru Copper Founder, Director and Executive Chairman Mr. J. David Lowell

4 International Mining December 2005

World prospects
recent cost increases that have been experienced in the resources sector in Western Australia. The RGP3 scope includes the development of a new pit at the Area C E Deposit and the construction of new crushing and screening facilities at the mines C Deposit. Port and rail facilities will also be expanded to facilitate this capacity increase and to accommodate further staged growth. The expansion will include a new stockyard, upgraded car dumper and ship loading facilities, as well as additional rolling stock and rail sidings. BHP Billitons Western Australian iron ore operations will be examined in depth in IMs March 2006 issue.

Two Rivers will flow


African Rainbow Minerals (ARM) and Impala Platinum Holdings are proceeding with the 220,000 oz/y platinum group metals (PGM) project, Two Rivers Platinum on the Eastern Limb of South Africas Bushveld Complex. The joint venture is held 55% by ARM and 45% by Implats and has contracted ARM to manage the project, while Implats will undertake the processing and refining through its subsidiary Impala Refining Services (IRS). Two Rivers capital expenditure is estimated to be in the region of R1.2 billion to commissioning. Project finance of R600 million has been secured through ABSA and Nedbank, with the balance being contributed by the two partners in their respective shareholding ratios (ARM R330 million and Implats R270 million). The go-ahead decision followed successful trial mining to test all critical project assumptions. Mining and stockpiling of nearly 240 000 tons of UG2 ore, as well as extensive access development has substantively validated geological and mining feasibility parameters. Two Rivers lies in the southern, central part of the eastern limb of the Bushveld Complex in Mpumalanga province. Both the Merensky and UG2 reefs are found on the property, but UG2 will be the initial focus of the mine. The UG2 reserve totals 40 Mt at a 6E mill grade of 4.18g/t. A platinum to palladium ratio of 5:3 adds to the attractiveness of this project. ARMs CEO, Andr Wilkens said: The decision to proceed with Two Rivers is aligned with the companys growth strategy. The PGM sector is one of ARMs key commodity focus areas, the project has an exciting return which comfortably meets the companys required return rates, and the successful trial mining phase has reduced risk considerably. Keith Rumble, CEO of Implats said: Two Rivers is an integral part of

ed early in 2006. Once [it] has been completed, Peru Copper will immediately begin work on a full feasibility study. The Toromocho study will be managed from SNC Lavalins Santiago, Chile office. The Toromocho project is situated in Morococha, an historical mining district in central Peru. It is a porphyry copper, potentially open pittable, mineral deposit. Prior to Peru Coppers involvement in Toromocho, from 1966 to 1976 Cerro de Pasco, a US mining company that owned a majority of the mineral concessions contained within the Cerro de Pasco mining district prior to their being nationalized in 1974, and Centromin conducted a total of 42,394 m of diamond drilling on the deposit. Within the newly reported resource is a central core of measured and indicated material of 967 Mt at a grade of 0.60% Cu and 0.88% Cu equivalent, using a Cu equivalent cutoff of 0.60%. The molybdenum grade is 0.023% and there are 8.1 g/t Ag. Using a slightly higher Cu equivalent cut off of 0.65%, the central core of measured and indicated material is 826 Mt at a grade of 0.63% Cu and 0.93% Cu equivalent. Measured and indicated material, based on a copper cut-off ranging from 0.27% to 0.59% Cu, totals 867 Mt at 0.32% Cu and 0.45% Cu equivalent, all of which will be stockpiled for leaching or other processing. Peru Copper says, based on a measured and indicated resource of 1,800 Mt and an estimated annual mill throughput of 54 Mt, Toromocho is estimated to have a life of over 33 years at an average production rate of 221,000 t of copper in concentrate.

Big Moma and Malagasy ilmenite

onstruction of Kenmares Moma titanium mineral sands project in Mozambique is currently anticipated for completion in late September 2006, some six weeks earlier than the contractual programme. Most of the capital items have already been ordered. A 1,600-m long airstrip has been completed and is in use transporting staff between Moma and Johannesburg. Bulk earthworks are complete and civil works are progressing well. The first concrete pour took place in June as foundations were prepared for the arrival of the ex-Beenup plant from Western Australia. The mine, located on the coast in the north of the country, will have the capacity to produce 700,000 t/y of ilmenite as well as 60,000 t/y of zircon and 17,000 t/y of rutile. Managing Director Michael Carvill has said the capital cost of the mine is expected to be $235 million. The proven and probable reserves within the dredge path design for the project are 469 Mt grading 4.3% Total Heavy Minerals (of which 3.5% is ilmenite), which is equivalent to 16.4 Mt ilmenite. Total Resources at Moma are 2.3 Mt of ore containing 72 Mt of ilmenite.

Implats growth strategy and is a building block in our plans to reach 2.3 Moz platinum by 2010. The current expansions at our refinery complex are proceeding well, and the necessary capacity will be available well ahead of the planned commissioning date." The life is forecast for 20 years at an underground production rate of 2.2 Mt/y (ROM). The mine will be accessed via a decline shaft system comprising a footwall conveyor decline and two on-reef declines: one for vehicle access and the other a chairlift installation for personnel transport. The underground mining operations will be fully mechanised. Main metal sales are planned at an average annual production over the life of the mine of 120,000 oz platinum, 68,000 oz palladium and about 20,000 oz rhodium. Full production is forecast during the second half of 2006. Andr Wilkens continued: All project assumptions indicate that Two Rivers will be one of the lowest cost PGM producers at less than R200/t. We are also optimistic about the upside potential that exists at Two Rivers as additional resources exist in the Merensky Reef that will be mineable in the future.

Voiseys Bay
On October 20, Inco achieved another significant milestone with the start-up of the demonstration plant in Argentia, Newfoundland to test hydrometallurgical processing technologies to treat Voiseys Bay nickel concentrates. The demonstration plant at Argentia will build on the successes weve already achieved with our hydromet R&D program at the mini-pilot plant in our Sheridan Park research facility, said Inco Chairman and CEO Scott Hand. We believe hydromet technology can play an important part in the future of the Voiseys Bay project and will help to position Canada and Newfoundland and Labrador at the forefront of mineral processing technology worldwide. With the financial support of C$60 million from Technology Partnerships Canada, Inco launched an approximately US$150 million research and development programme in 2002 aimed at confirming the commercial application of hydrometallurgy. Our hydromet research and development represents one of the most significant R&D investments in Canada, said Mr. Hand. Hydromet technology offers a cost-effective and environmentally friendly alternative to conventional smelting and refining which will help place the Canadian mining industry at the forefront of the development of this processing technology. Inco is developing hydromet technologies for Voiseys Bay

MOMA Dredge Pond construction

Kenmare says the market outlook for titanium minerals continues to be positive, driven by strong pigment demand most notably in China. Industry analysts forecast tightness in the ilmenite market to continue for the coming years. This has led to a firming of ilmenite prices, which is set to continue as limited new supplies are scheduled to enter the market and Moma is well placed to capitalize on the positive demand outlook. Negotiations are ongoing with a number of customers for the balance of Momas ilmenite production. Demand for zircon continues to be very strong and prices have increased to circa $700/t for premium grade. This compares to our financing which was based on approximately $500/t. The outlook is for zircon supply to remain tight for the foreseeable future. Kenmare has contracted a significant volume of its zircon to date at market-based prices, ensuring that we benefit from the continuing strong market conditions.

6 International Mining December 2005

in four stages: bench-scale laboratory testing, which is already completed; the operation of a 1/10,000 scale mini-pilot plant which began in 2003 and was completed in June 2005; the operation of a 1/100 scale demonstration plant; and its final application. The commercial plant, using this technology to treat Voiseys Bay concentrates, would be built in Newfoundland and Labrador. Hydromet has several key advantages over a conventional smelting and refining process. It is more economical in terms both of capital and operating expenses, more energy efficient, and more environmentally friendly, eliminating the sulphur dioxide and dust emissions associated with a conventional smelter. The demonstration plant phase of the hydromet R&D programme is scheduled to conclude in late 2007, at which time Inco will complete its assessment of the technical and economic feasibility of using hydromet to treat Voiseys Bay concentrates at the commercial processing plant. Construction of the commercial processing plant would begin in 2009 and be completed by the end of 2011.

Meanwhile, Rio Tinto is to go ahead with development of a $775 million titanium dioxide project. The project comprises a $585 million mineral sands operation and port in Madagascar and a $190 million upgrade of its ilmenite facilities in Canada. First production from the operation in the Fort-Dauphin region is expected in late 2008 and the initial capacity will be 750,000 t/y of ilmenite. The ilmenite will be smelted at Rio Tintos facilities at Sorel in Quebec. Leigh Clifford, Chief Executive of Rio Tinto, said: We have already demonstrated that we are committed to developing the project in a manner consistent with the principles of sustainable development. Indeed, it will be a model of the contribution mining can make through the successful integration of financial, environmental and community objectives. The development is the largest project in the countrys history and should be the catalyst for broader economic development of the country. It is being developed by QIT Madagascar Minerals (QMM), a Malagasy subsidiary of Rio Tinto (80%) and the government (20%). Andrew Mackenzie, Chief Executive of Rio Tintos Industrial Minerals product group, said: With a grade of 60% titanium dioxide, the orebody is the largest known undeveloped highgrade ilmenite deposit. It has an expected mine life of 40 years and will supply a new, high quality chloride slag with 91% titanium dioxide content.

will receive asset transfer payments totalling $50 million during a period of approximately five years as specified project milestones are reached. J. Steven Whisler, Chairman and CEO of Phelps Dodge commended the countrys leaders for their visionary efforts to bring progress to the DRC. We look forward to working with our partners in developing Tenke Fungurume, which we consider to be the largest and highestgrade undeveloped copper/cobalt project in the world today. Measured and Indicated resources are estimated at 233 Mt grading 2.9% Cu and 0.30% Co. The enormous deposits at Tenke Fungurume are within a concession area totaling more than 1,500 km2 in the rich and prolific Katanga copper belt. The project area remains extensively under explored. The known deposits contain inferred resources of 547 Mt grading 3.5% Cu and 0.27% Co. The mineralization is hosted in a sequence of sedimentary host rocks with a cumulative strike length greater than 82 km. Copper outcrops have been mapped over a 300 km2 area to date.

Project Magnet
BHP Billiton is to be OneSteels exclusive agent to market iron ores and pellets generated from its Project Magnet. OneSteels Project Magnet is scheduled to begin in the second half of the 2006 financial year. BHP Billiton expects to develop markets for approximately 3 Mt/y of hematite ore, both in lump and fines, and approximately 220,000 t/y of iron ore pellets. The marketing services we will provide will combine the flexibility of a niche producer with the customer base, technical marketing, freight and back office capabilities of the leading mining house. It will allow OneSteel to build a distinctive iron ore product brand in global markets. We are very proud to have the opportunity to represent OneSteel in this venture, Graeme Hunt, BHP Billiton President Iron Ore, said.

Production begins at Diablito


VANE Minerals wholly owned subsidiary, Minerales VANE, has initiated commercial production at its high grade gold/silver Diablito project located in the State of Nayarit, west-central Mexico. Agreements with Minera Real de Cosala and Nexxtrade (both Mexican companies) are in place, thereby assuring the availability of milling time for the processing of the high-grade precious metal ore and a trading platform for the sale of the resulting concentrates. Production of ore will continue at the rate of 60 t/d with the concurrent development of the lower levels of the mine for future production. It was expected that development of the upper level would be completed in November and then only ore would be mined from that level. This is anticipated to increase grade and therefore revenues. In August and September 2005, 3,200 t of ore were mined at Diablito and stockpiled at the Cosala mill. This stockpile underwent flotation concentration at the mill and the concentrates produced an estimated 100 t - were scheduled to be sold before the end of November. This was expected to generate revenue in excess of $400,000 for the two production months of August and September. Michael Spriggs, Chairman of VANE, commented: This commercial production is an important step in VANEs development as it differentiates us from other junior exploration companies. We are now set to produce solid cash flows, and the revenues generated from Diablito will offset the majority of the companys exploration expenditures which will reduce the cash burn to minimal levels.

Vismedia

Collahusai copper

More moly for Chile

mine, an aerial view of the primary crusher

PD takes up Tenke option


Phelps Dodge, through a subsidiary, has exercised an option giving the company controlling interest of the Tenke Fungurume copper/cobalt project in the Democratic Republic of the Congo. The action came after the government of the DRC and Gecamines executed amended agreements for developing the project and after approval by presidential decree. This establishes the ownership positions in Tenke Fungurume as Phelps Dodge, 57.75% Tenke Mining, 24.75% and Gecamines, 17.5%. A Phelps Dodge subsidiary will be the operator of the project as it is developed and put into production. In the transaction, Gecamines

ollahuasi, a joint venture between Anglo American (44%), excavation at the Falconbridge (44%) and a Japanese consortium, lead by Rosario pit. Mitsui and Co (12%), commissioned its molybdenum plant on September 27, two months ahead of schedule and under budget. Its design capacity is to process 4,300 t/d of copper-molybdenum concentrate and it is initially forecast to produce 4,000 t/y of molybdenum contained in moly concentrate, rising to up to 8,000 t in later years. Meanwhile, the first stage of the resource estimate of Collahuasis Rosario Oeste zone has been completed. Exploration indicates the zone contains an inferred resource estimated at 248 Mt grading 1.54% Cu at a 0.4% Cu cut-off. This resource comprises only a limited block, located in the central part of the zone, representing some 50% of the total prospective area. The zone is located 300 m from the edge of the current Rosario open pit and, as currently defined, remains open to the north, south and at depth. Further north, BHP-Billitons Escondida copper mine is conducting scoping studies for the possible construction of a molybdenum plant. Escondida VP Processes, Marcelo Villouta, told BNamericas in October: I think we will have the scoping studies complete within six months. As the worlds largest producer of copper, Escondida[s low moly grades would be offset by the large volume of ore processed, he said. We could be talking about 4,000 t/y of molybdenum in concentrate. Escondidas ore contains 70 ppm Mo in comparison to other Chilean operations that range from 100 to 400 ppm Mo, according to Villouta. He estimated that capital costs could range from $70 to 80 million given that the Collahuasi plant had cost $38 to 40 million. Escondida should produce the first cathode from its $870 million sulphide leach project next June 2006. This plant will treat ROM low-grade ore from Escondida's two open pits by bioleaching. More than 1,700 Mt grading 0.3-0.7% Cu has been outlined, with recoveries currently running at an average 36%. Initial production will be 90,000 t/y but will increase to 180,000 t/y in year 2. The copper is expected to cost $0.40/lb.

December 2005 International Mining 7

Operation focus

CVRDs iron fist


The worlds biggest producer has big plans, examined by John Chadwick

ia Vale do Rio Doce (CVRD) is a global diversified metals and mining company, the largest in the Americas. Headquartered in the city of Rio de Janeiro, it is the largest logistics operator in Brazil. It is also a world-class producer of manganese, ferro-alloys, copper concentrate, bauxite, potash, kaolin, alumina and aluminium. It is also growing into nickel. However, above all, CVRD is the worlds number one producer and exporter of iron ore and pellets. Iron ore and other ferrous metals account for about 80% of CVRDs revenue. Records are currently tumbling. In the first nine months of 2005 production totalled 187.44 Mt of iron ore, a new record. In the third quarter, 65.26 Mt of
8 International Mining December 2005

iron ore and pellets were shipped, beating the previous record of 62.386 Mt. Gross revenues of $3.61 billion were 57.8% higher than in 2004. CVRD groups its iron ore operations into two Systems. The Southern System produces lump ore, direct reduction lump, standard sinter feed, pellet feed, Tubaro direct reduction pellets and Tubaro blast furnace pellets. Products of the Northern System are Carajs lump and Carajs fines, Carajs pellet feed, Carajs direct reduction pellets and Carajs blast furnace pellets. With reserves of 3,000 Mt and resources of 39,000 Mt, the mines of the Southern System are located in Minas Gerais. Ore is carried from these mines by the Vitria-Minas railroad that runs 905 km to the Port of Tubaro, in the State of

Esprito Santo, and the Port of Sepetiba, in the State of Rio de Janeiro. The capacity of these mines is 90 Mt/y of iron ore. With reserves of 1,500 Mt and resources of 15,500 Mt of high-grade hematite, the Carajs orebodies, in the State of Par, are the heart of the Northern System. Ore is carried by the Carajs railroad to the Ponta da Madeira Maritime Terminal, in the State of Maranho. With a total annual capacity of 36 Mt, CVRDs pelletizing complexes in Tubaro, So Luis and Minas Gerais consist of nine plants. The CVRD iron ore mines are Alegria, Alegria/Germano, Brucutu, Capanema, Carajs, Caue, Conceicao, Fabrica/ Segredo, Fazendao, Feijao, Gongo Soco, Morro Agudo/Agua Limpa and Timbopeba. Just one of those mines,

Operation focus
Carajs, will expand to 100 Mt/y in 2007. The company aims to increase annual iron ore output to 300 Mt by the end of 2007. CVRD reported $1.39 billion in capital spending in the first half of 2005 and earmarked almost $1.94 billion more in the second half, mostly for new projects but not all in iron ore. In 2004, CVRD generated an all-time revenue high of $8.5 billion, an increase of 53% over 2003. The final 2005 is sure to be higher still, much thanks to iron ore. During 2004, the company signed contracts for the supply of 750 Mt of iron ore and pellets with 40 clients in the Americas, Asia and Europe. In fact, iron ore demand was so high that CVRD had to expand its general cargo business four times above Brazils GDP growth rate. In August this year, CVRD concluded its first iron ore shipment to Ukraine. Ukraine is the worlds 7th largest steel producer and CVRD stated: This shipment represents the conquest of a new frontier of the iron ore seaborne market. For 2005, CVRD approved capital expenditure of $3.332 billion. Of the total, 22.1% $736 million was allocated to stay-in-business capex, to sustain existing operations, and 77.9% $2.596 billion to growth capex, made up of $2.221 billion to be invested in projects and $375 million in research and development. This compares with 2004 capital expenditure of $1.956 billion. One of the important projects concluded in 2004 was the expansion of iron ore production capacity at Carajs to 70 Mt/y. But that now has further to grow. The considerable increase in the 2005 budget allocated for projects $1.160 billion is partly for new investments in 2005 (iron ore, pellets, coal, copper and nickel). Total investment in logistics should attain $760 million in 2005. The fleet of railroad equipment will be expanded to meet demand for both iron ore haulage and general cargo for clients: 5,606 wagons and 123 locos, with a total estimated value of $559 million.

Main CVRD ferrous metals projects currently in progress


Project Budgeted 2005 ($ million) Expansion of the Carajs 140 iron ore mines by 85 Mt/y ship Brucutu iron ore mine Southern System 205 Status For completion in 2006, this will add 15 Mt to CVRDs annual capacity. The second loading system of Pier III in test phase. Phase I should be completed in 2006, raising nominal capacity to 15 Mt/y. Phase II is to be completed in 2007, to bring production capacity to 24 Mt/y. A further expansion, to 30 Mt/y is currently under study. Modernization and expansion, raising capacity to 46 mt/y, for completion and startup in 2006. Project to produce 14 Mt/y (ROM) iron ore. Works began in second half 2005, for completion and operational startup in 2007. Project to expand capacity by 5 Mt, from Southern System 12 to 17 Mt/y. Startup scheduled for 2007. Extension of mine life to 2008, with an estimated capacity of 2.7 Mt/y. Some $7.8 million will be invested in development, purchase of small-scale equipment and new access for crushing facilities; a further $17.6 million will go on rolling stock for EFVM railroad. Expansion of the conveyor and dockside machinery, and construction of new dockside storage facilities. Expansion of capacity from 6 to 7 Mt/y. The expansion will be completed by January 2006. Production this year is estimated at 6.251 Mt.

Itabira iron ore mines Southern System

16

Fazendo iron ore mine Southern System

52

Fbrica iron ore mine

38

Timbopeba iron ore mine Southern System

25

Tubaro Port expansion Southern System

22

Expansion of So Luis pelletizing plant

18

N.B. Capex figures are based on actual disbursements.

Iron ore projects


Five iron ore mining projects are underway in the Southern System Brucutu, Fbrica Nova, Itabira, Fazendo and Fbrica as well as the increase in production capacity at Carajs. When completed, these projects will increase capacity by 76 Mt/y, for capital expenditure totalling $1.169 billion. The capacity of the pelletizing plant at So Lus will be expanded from 6 to 7 Mt/y. The Port of Tubaro, in the state of Esprito Santo, is being expanded to increase the speed of handling iron ore in order to reduce demurrage costs. CVRD Executive Director Finances Fabio Barbosa has predicted that iron ore output will reach 275 Mt in 2007.
10 International Mining December 2005

The Fbrica Nova iron ore mine, in the state of Minas Gerais, started up in April. It is exploiting the Mariana deposit, in CVRDs Southern System, and uses the Timbopeba beneficiation plant. It has a nominal production capacity of 15 Mt/y of iron ore, and production for 2005 is estimated at 10 Mt. The total investment in this project was $106 million. Some $3 million was invested in environmental recovery and protection of the areas affected by Fabrica Nova operations, in line with the world best practices in environmental protection. At the beginning of this year, CVRD took over the operations of the Andrade mine under a lease contract with the Brazilian steel maker Cia Siderrgica Belgo-Mineira that extends for a period of 40 years. At the same time, the company started exploration to determine the volume of reserves that will support the capacity expansion plan for Andrade. Andrade is an additional source of iron ore for the Southern System.

Complex Carajs
Carajs is an integrated mine-railroad-port system, built and operated by CVRD. Today it is the backbone of the economic and social development of a huge area of north/northeast Brazil. CVRDs mining and processing activities there embrace iron ore, manganese, gold, copper, bauxite and, soon, nickel. The Serra dos Carajs Range lies in Eastern Amazonia, southern Par State, at an average altitude of 650 m, some 680 km southwest of the State capital of Belm, and 280 km from Marab, the largest town in the region. Carajs is served by its own airport. On July 31, 1967, a team of Brazilian geologists from Cia Meridional de Mineraes - CMM (a subsidiary of U.S. Steel) landed in a clearing in Serra dos Carajs, where the ground had a visible overlay of iron ore. In April 1970, CMM and CVRD became associated. CVRD was already producing iron ore, had been since 1942, from the Itabira mines in southern Brazil. Carajs exploration

Operation focus
continued until 1977, when U.S. Steel, concerned about the high investment and poor international market for iron ore at the time, withdrew from the project. June 1978 saw the start of track laying for the 890-km Carajs railroad, linking Ponta da Madeira on the Maranho coastline to the Carajs resource. This launched the Carajs Iron Ore Project, which was to cost CVRD $3 billion in direct investments: 56% for the railroad, 20% for the mine and beneficiation plant, 14% for the marine terminal, and 10% for infrastructure. Reserves of high-grade iron ore at Carajs are sufficient to guarantee production for another 400 years, at current levels. The first orebody selected for mining was N4 (eastern area N4E) due to ease of access to the railroad, shallow overburden and low impurity levels. Its original mineable reserves totalled 1,200 Mt.

More than 350 Fabri-Valve products for CVRD

VRDs new Brucutu mine has chosen the Engineered Valves Group of ITT Industries to supply more than 350 valves. Start-up of Brucutu is scheduled for 2007. It will use two types of ITT valves. The Ported Slide Gate Valve is designed specifically for difficult slurry processes. Available in bonneted and unbonneted versions, ranging in size from 51 to 1.37 m, the design includes two constant contact seats, and gate support rings that reduce the stress on the seats resulting in remarkable service life. The Bi-directional Knife-Gate Valve is a full port valve used in water reclamation. Ranging in size from 51 mm to 914 mm, it provides a bubble-tight shutoff in both directions at the full rated pressure. This valve has a unique, patented elastomer perimeter seat, which insures positive shut off independent of line-pressure.

Innovative Samarco
Samarco Minerao is a 50:50 joint venture between CVRD and BHP Billiton - mining beneficiating, pelletizing and a port to export pellets and pellet feed. It was the first to exploit itabirite, a low-grade iron ore and now is the second largest seaborne exporter of pellets, selling its products to over 15 countries in Europe, Asia, Africa, Middle East and the Americas. It has about an 18% share of the world market. Samarcos Germano unit (mining and beneficiation plant, capacity 16.5 Mt/y of wet concentrate) is in Minas Gerais, in the municipalities of Mariana and Ouro Preto. The Ponta Ubu unit (pelletizing plant and port facilities) is in Esprito Santo, in the municipality of Anchieta. Iron ore concentrate is pumped from Germano to Ponta Ubu in a 396-km pipeline, which was built 28 years ago! Samarco is an open-pit mine with 4,000 Mt (a useful life of about 50 years, at the current production rate) of iron ore resources. Over recent years, Samarco has optimized production and raised capacity at its pelletizing plants to some 14 Mt/y of pellets. In 2004, concentrate production was 15.5 Mt (dry), of which 13.5 Mt came from Samarco itself and 2 Mt were acquired from CVRD. The company has just received Board approval for its Third Pellet Plant project. This will expand capacity by 54%, raising it from the current 14 Mt/y to 21.6 Mt/y. It is expected that an investment of $1.183 billion will be required to build a new concentrator in Germano, a new 7 Mt/y pipeline adjacent to the current pipeline and the third pellet plant (7.6 Mt/y capacity). This project will increase 50% owner CVRDs revenue by about 1.5% in 2008, Deutsche Bank said in a research note. The expansion highlights market demand strength and supports iron ores
12 International Mining December 2005

continuous growth trend, according to the research note, which reaffirmed its buy rating recommendation for CVRD. Samarcos iron ore reserves are located in the Alegria Complex, in the eastern portion of the Quadriltero Ferrfero, the rich iron-ore region of Minas Gerais. Belt mining now accounts for some 70% of total ore transport, because of the lower operating costs, compared with conventional mining, since there is no need for truck haulage, and it involves fewer pieces of equipment and lower consumption of diesel oil per tonne of transported ore. It is also safer. The principles of belt mining are shown in the diagram. Multiple faces are extracted and wheel loaders dump on to the 8-km mine belt system that feeds the beneficiation facilities. In the crushing and screening plant, ROM ore is reduced from 150 mm to a 12.5-mm feed for the grinding section. Pre-primary and primary ball mills prepare the feed for the flotation circuit. Prior to flotation, the desliming process (three cycloning stages) removes ultra fine particles (<0.001 mm) that are detrimental to flotation. The fines recovery plant (cycloning and column flotation) recovers the fines discarded by desliming. There is then a secondary grinding circuit, followed by column flotation to prepare the product for slurry transport and for the pelletizinng plant. Slurry is thickened to 70% solids, from 45%, and then the final concentrate is pumped to the pipeline. All recovered water is recycled. The beneficiation facility

recycles about 93% of its water. Pumping station I is at an elevation of 1,011 m. Some 62 hours after leaving there, the concentrate arrives at the Ponta Ubu terminal next to the pelletizing plant. The pipeline is made of API 5 LX-60 steel plates, and of its total 396 km, 346 km have a diameter of 508 mm and 50 km a diameter of 457 mm. The wall thickness varies between 8 and 19 mm. Almost all of the pipeline is buried at a depth of about 1.5 m, protected against corrosion by a PVC lining and a system of forced flow cathode protection. The transport velocity ranges from 1.5 to 1.8 m/s, with a flow rate between 1,000 and 1,200 m3/h. At its highest point it crosses the Capara range, at an elevation of 1,180 m. The pipelines useful life was initially estimated at 20 years, but due to careful maintenance, improved operational control and lower corrosion and erosion rates, it is currently estimated that it can be double that.

.. And CAEMI makes $2 billion


Caemi Mineracao e Metalurgia, a unit of CVRD, is going ahead with a $760 million expansion of the Itabaritos iron ore project over the next three years. Caemi said the investment will expand operations at its Mineracoes Brasileiras Reunidas (MBR) subsidiary, Brazils No. 2 iron ore producer and exporter, in Minas

Diagram of belt mining

With its extension of 396 kilometers, the Samarco pipeline links the units of Germano (Minas Gerais) and Ubu (Esprito Santo). Since it went into operation, in 1977, it has transported over 230 million tons of slurry, consisting of 70% ore concentrate and 30% water.The ore travels for 63 hours, at a speed of 6.5 km/hour, through 24 municipalities.

Above: A truck at Timbopeda mine. Right: Map of Samarcos operations.

Gerais. MBR achieved a new record in the second quarter of 2005 with sales of 12.3 Mt, making the total for the first six months 23.8 Mt. The expansion comprises $462 million for a new pellet plant, $282 million for a new beneficiation plant and $15 million for a 4 km ore conveyor belt linking the pellet plant and the processing units. The 7 Mt/y pelletizing plant at Nova Lima will export about two-thirds of its production. The processing plant at Mina do Pico in Itabarito will produce 10 Mt/y of iron ore concentrate and is due to start-up in the first quarter of 2008.

Steeling itself
Besides iron ore, CVRD has invested significantly in other constituents of steel. Indeed, Chief Executive Roger Agnelli has signalled his target to diversify into new countries and metals with the aim of becoming the worlds third largest mining firm by the end of the decade. Few doubt that will come about. Discovered in 1974, the Vermelho nickel deposit in the Carajs mineral province is being developed, based on reserves of 44 Mt containing 1.5% Ni. Vermelho lies 70 km south of the Carajs iron ore mines and 15 km east of the Sossego copper mine. Its estimated production capacity is 46,000 t/y of nickel metal, and 2,800 t/y of cobalt metal - with an expected commercial life of 40 years. The capex estimate is up to $1.2 billion, with start-up scheduled for the fourth quarter of 2008. The project involves construction of a high-pressure acid leaching (HPAL) plant to process nickel laterite. After almost five years of development of the process and project, CVRD believes that by choosing the process based on precipitation and re-leaching of nickel hydroxide it has selected the most proven process, and the one with least risks in terms of operational stability, environment, and work health and safety. Pilot plant campaigns were carried out at a technology centre of excellence in Australia. Average leaching extraction exceeded 96%, and LME-grade nickel cathode was produced. CVRD employed an international team with extensive operational experience in HPAL and nickel producing plants and believes it has minimized the risks of problems similar to those that have been seen in second-generation HPAL plants. CVRD says the extensive infrastructure of Carajs and the process-friendly features of Vermelho - in terms rheology and the availability of good quality water at the site - place the investment cost of the project at a more favourable level than those of other laterite-nickel-based projects.

Furthermore, in order to increase its presence in this market, CVRD is also developing the pre-feasibility study of the So Joo do Piau nickel deposit, and conceptual studies for other deposits

To all our Clients, Candidates and Friends - all the staff of Thomas Mining Associates extend their greetings and the opportunity of

December 2005 International Mining 13

Operation focus
in the states of Gois, So Paulo and Paran, aiming to turn Brazil into one of the largest nickel producers of the world. In September CVRD made an offer to acquire all of the outstanding common shares of Canico Resource Corp. Canadian-based Canico, describing itself as an emerging mid-tier nickel company, is developing the Ona-Puma nickel laterite project in Par State. The feasibility study prepared by Hatch plans an open pit, a high productivity smelting facility based on conventional Rotary Kiln Electric Furnace (RKEF) pyrometallurgical smelting and all related infrastructure and equipment necessary to produce and deliver ferronickel to market from the Ona Puma lateritic nickel deposits. The study considers building a two-line plant in two phases. Initially, a single line plant would be constructed over a 37-month period commencing with basic engineering at a total capital cost estimated at $762 million. The first line would reach full throughput capacity of some 1.28 Mt/y of ore over an ensuing two-year ramp-up period. The second line would be built over the next two years, at a total additional capital cost estimated at $352 million. When both lines are in full service following ramp-up of the second line, the smelter would process approximately 2.56 Mt/y of ore. The yield will be a refined ferronickel product (about 25% Ni and 75% Fe) for direct sale to stainless steel mills. On November 11 Canico announced it had entered into a definitive support agreement with CVRD following agreement with CVRD to improve the terms of its previously announced take-over bid. The increased price represents a premium of approximately 53% over the volume weighted-average trading price of Canicos common shares on the Toronto Stock Exchange (TSX) for the 30 trading

days immediately preceding the September 15, 2005 date of announcement of CVRDs intention to proceed with the Offer. The board of directors of Canico has determined that the Offer is fair to all shareholders of Canico and in the best interests of Canico and its shareholders and, accordingly, has unanimously recommended that shareholders of Canico accept the offer.

Part of the Alegria mines 8-km belt system that does the work of many haul trucks.

Manganese and ferro-alloys


CVRD is also one of the worlds biggest players in the manganese and ferro-alloys market. Four CVRD companies produce manganese ore and ferroalloys. Rio Doce Mangans (RDM) has three mines and five ferro-alloys plants in the States of Bahia, Minas Gerais and Par. Urucum Minerao has manganese and iron ore mines and one ferro-alloy plant in Corumb, Mato Grosso do Sul. Rio Doce Manganse Europe produces ferro-alloys in Dunquerque, France; and Rio Doce Manganese Norway produces ferro-alloys in Mo i Rana, Norway. The manganese deposits at Azul, Carajs were discovered in 1971. Exploration outlined reserves of 65 Mt of

manganese ore: 53.7 Mt of metallurgical ore (used to produce ferro-manganese alloys) and 11.4 Mt of manganese dioxide (for making batteries) with manganese dioxide content of over 75%. The beneficiation plant, with an annual processing capacity of 1 Mt, came on stream in 1985. This plant produces three products: lump ore (50%), sinter feed (40%), and gauge ore (10%). In 2004, CVRDs consolidated gross revenue from the manganese and alloys business was $666 million. The company broke records in manganese ore with nearly 2.7 Mt produced. This year, the company expects to invest $93 million in the manganese and alloys business. Manganese is the fourth most-used metal in terms of volume, second to iron, aluminum and copper. Nearly 90% of the ore produced in the world is used in the steel industry in the form of manganese ferro-alloys. Manganese ferroalloys are iron, manganese, carbon and silicon alloys used in the steel-making process to remove contaminants or as an alloying element to change the steels crystal structure. The properties of steel are changed entirely by adding manganese, and the amount of manganese alloys added depends mainly on what the steel is to be used for. Steel, as we know it, would not have the same mechanical properties were it not for the manganese added to it, explains Nelson Janotti, CVRDs Technical Advisor in the Manganese sector. IM
The first Larox PF filters have been in operation in CVRDs Carajas plant for several years already, dewatering fine hematite ore (Blaine value around 1500, 65 wt% < 45m, slurry solids content around 65 wt%). The most prevailing performance figure has been low cake moistures, in the range of 8.0 8.5 wt%, while the filter availability has been over 91 % in undisturbed conditions. Regular and skilled preventative maintenance is needed in order to keep the availability high.

14 International Mining December 2005

Licence to

Licence to operate

ICMM and World Bank launches community toolkit

ining companies are increasingly looking for ways to ensure that their There are 17 investments make a longtools that cove r a mines op closure. The to erational stag lasting contribution to olkit offers a st es, from explor ep-by-step ap each tool. Th ation through broader socio-economic development in proach and de ese fall into six to tailed guidance categories: on how to use the areas where they operate. The imperative I. Assessmen behind this statement can be seen in the t Tools for as sessing the so munity mem cio-economic latest batch of community programmes bers, how th environment. ey live, any ex build and supp Identifying co isting conflicts being taken forward by some of the ort a commun mand the reso ity developmen urces needed worlds leading mining companies and in t programme to are among th II. Planning To e items covere a new initiative, which they are now ols for desig d. ning participat sustainable de supporting. ory developm velopment. G ent programm uidance is avai isations, such es to support lable for intern The Community Development Toolkit as a company al planning in or NGO, and across organi specific organfor planning th project is designed to foster closer sations and co at may require mmunities. co-ordination relationships between mining companies, III. Relationsh communities and governments in order to ip Tools fo r building an all stakeholde d maintaining support sustainable development activities rs, including effective relatio governments organisations nships betwee , community that last beyond the life of a mining . Partnerships n members, co are the founda fore essential mpanies and tion of all co-o operation. The International Council on for sound com local perative activ munity develo ities and ther pment progra Mining and Metals (ICMM) is launching emmes. IV. Programm the project, in co-operation with the World e Managemen t Tools for Tools. This se supporting an Bank and the Energy Sector Management t of tools aim d implementin s to ensure th uled, and that g the Planning at plans are re Assistance Programme (ESMAP). there are capa alistically reso ble people ta urced and sche king responsib The Toolkit, which can be applied at dility for implem enting them. mining operations anywhere in the world, V. Evaluation Tools for m easuring prog goals. Particip ress and assess has its roots in southern Africa and the atory monito ing results ag ring is also co to plans durin ainst program vered to ensu momentum of a World Bank workshop of g implementa me re that modifi tion. cations are m the Southern African Development ade The toolkit also Community. The workshop agreed on the sources key re ferences, guid toolkit includes elines and good need for a practical toolkit that would a supporting in practice case st troductory volu udies. The full me and is avai help the various parties work together to lable at www .icmm.com. achieve genuine and sustainable sociomembers have economic development from mining committed to contribute to the social, activities, and the Toolkit project was born. participation processes and economic and institutional development What has this meant in practice? In conflict management. of the communities in which they operate, short a set of 17 tools covering five key The resulting draft reports were discussed the idea being to enhance the contribuareas relating to a mines development, at two workshops in Johannesburg in tion of mineral-related investment to operation and, ultimately, its closure. What 2003 and after considerable debate and sustainable development. are the potential impacts and opportunities fine-tuning the southern African experience The evidence that this is already from a mining project? Who are the key was given a global context. Good practice happening among ICMMs membership is stakeholders and potential partners? How examples from other parts of the world plentiful. For example, Palabora Mining will any projects be supported after the were incorporated and the Toolkit project Co, a subsidiary of Rio Tinto, has worked mine has closed? These and other issues came into being. The result, notes Peter in partnership with local people to develop are all covered by the Toolkit. van der Veen, Manager of the World the Titirheleni Community Gardens in For its part, ICMM has taken up the Banks Oil, Gas and Mining Division is a Limpopo, South Africa. The gardens provide community baton as a key element in its toolkit presenting all of the stakeholders incomes and produce to feed families, core mission: namely to promote and with the best local and global experience and training in financial, management provide leadership on sustainable that offers practical guidance for all stages and technical skills has enabled the development practices in the mining of the development process from first project to become self-supporting. industry. contacts between development geologists In fact, the Toolkit project began in The Toolkit project does exactly this by and local community members, through southern Africa through a small, multiproviding a set of practical tools that to construction, operations and eventually stakeholder regional advisory committee. support good practice in local community decommissioning and closure. Committee members had expertise in development. The concept is to ensure This sharing of good practice, in community and social issues around that they can be accessed and used by all whatever area, is a core element of mining in the region and their work led the relevant parties not only mining ICMMs mission. By working together as to the commissioning of five studies companies but also the stakeholders who an industry and with all our stakeholders, designed to see how mining could add stand to benefit from their activities. including local communities, the mining value and support community developThe bottom line or underlying drivers sector can successfully contribute to ment. Topics covered included sustainable can be found within ICMMs Sustainable sustainable development. IM development assessments, public Development Framework. ICMM

The toolkit a t a glance

December 2005 International Mining 15

Innovation intelligence

Ventilation control
Minova provides answers that get fresh air to the face quicker and cheaper

A
A
16 International Mining December 2005

s workings become deeper and more distant from the ventilation inlet, better seal construction technology is required to ensure that fresh air goes to the working face. In particular, mines that experience severe roof and floor movement require seals to remain effective in zones of convergence. One traditional method of using blocks has a number of associated problems. These can include brittle failure due to roof movement and block degradation from acid mine water. There is also the high cost associated with the transportation of blocks to remote areas. Tekseal is Minovas answer to these limitations of traditional block seals. This is a specially formulated pumpable grout which allows a seal to be erected quickly and safely and also offers cost savings through reduced construction time and transport costs. A traditional block seal can typically take eight to ten man shifts to construct. A pumped seal of the same size using Tekseal takes about half that, Minova reports. A block seal requires a large amount of work prior to construction such as keying into the ribs and roof and making a solid footing which may require

drilling and blasting to a solid bottom. Once this preparation work has been done, the materials required for the job need to be transported to the site. In a working height of 1.6 m, a seal requires 360, 200 x 200 x 400 mm blocks, each weighing 15 kg. In addition to this, a 24 hour drying period is required when the

Installing the filling pipe into a Teakseal stopping

A complete Teakseal stopping

seal is half built, with a second drying period before filling the cavity to the roof. When using the Tekseal method no hitching is required and the floor is taken to solid. The form work consists of two walls spaced at least 1.2 m apart, depending on the height of the gallery. Each wall consists of 120 mm square posts evenly spaced across the opening. Planks of 20 x 150 mm size are then nailed across the posts at 400 mm centres. The final stage of construction involves nailing or stapling brattice cloth to the inside of the form work. It is important that the cloth is overlapped at the edges to provide a seal when the Tekseal grout is pumped in. Once the back wall is fully constructed, a small opening in the front wall is left as a means of egress for the construction crew. Once this form work is complete the Tekseal grout can then be pumped into the form work. The grout is pumped through a placer unit that ensures that the correct amount of water and air is mixed with the powder. This gives a grout with a density of 0.5 to 0.7. The grout is pumped through a small hatch that has been left at the top of the form work. When the grout reaches the level of this

longwalls or roadways and for sealing roof cavities against methane build up. In certain situations a seal or stopping must be installed quickly to control ventilation problems, such as a heating in the goaf. In these situations there is often very little time to transport large quantities of materials into remote locations. Where this occurs Carbofill is an ideal solution. Its rapid reaction time and high foaming factor allows a seal to be placed extremely rapidly even in the remotest of locations. This enables control of such events to be effected easily and efficiently with the minimum amount of material transport.IM
Injecting a cavity with Carbofill

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17:30

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n Focus Operatio

September 2005

hatch it is sealed using a pre-cut length of plank. The seal is then pressured through pipes and valves that have been placed along the top of the seal. Any leaks in the formwork can be sealed using rags or paper. In certain areas, cementitious grouts are not always suitable, needing a water supply and dedicated placer machine. Minova can offer an alternative to these cementitous materials. The Carbofill range of products comprises a two-component phenolic resin based foam, which, depending on the variant used, has rapid reaction time, high foaming factor and is non flammable. The resin foam is generated using a suitable pump, which is provided by Minova. The twin components are passed through a mixing pipe and injected into the cavity or ventilation seal site. The equipment used is easily cleaned as water can be used, eliminating any need for specialised and hazardous solvents. The advantage of these products to the user is that a minimum amount of material has to be transported to the seal site. The application of the seal is quick through the rapid reaction time and high expansion of the Carbofill product. Carbofill can also be used for other applications including foam support in roof cavities on

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P T FI defineslass worldc

Operation Focus

Conveying

www.im-mining.com

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There ions are province of with km. coast, in the right their some 141 1.3 particular than the repair. km by 1 PTFIs operat the southwest m from posi- should be taken is preferred in that ex shown materi5 million in Changzhi, Chairman of the erable) of mately 1 from primarily and 4,200 rg compl l es (recov number of factors Vulcanized splicing Lerch, the This was km north Mill Level ons of 2,500 project is on. Shanxi. Gerhard The Grasbe view) illustrates However, mechanica conthe compaof the Moz of gold. into considerati en elevati at the Deep d aggre- belt choice include of ContiTech, ric some locations. as it to the betwe the results since Executive Board gaining favour affecting (3D isomet wonder and layout ls dislevel. Access Amamapare on has belonged The Year-en tive drilling reducsplicing has been orebody. factors rable nt. Is the conveyor ng of above sea rg minera d an ny to which Phoenix 146-Mt its value as a cost the als handli le recove international PTFIs port Mt Grasbe old Zone, a operating environme recently inaugurate tinues to prove dominates through and probab from the alternative. The of tion, were ground or in particularly the end of 2004, line for current 2,769 The Grasberg River, and e open gate proven of 2004 produc above or below Cu, s. ing, uptime increasing splice is as strong 43 km north from new production Tipoeka line net ultra-modern trict reserve district with its massiv cave ing 1.09% Timika, some ex is 118 km belts. The new reserves, hot or cold conditions? safety requiresaying that a vulcanized A vulcanized airport of con) and block of ore averag there The aggrestatutory heavy-duty conveyor The compl west of the belt is false. to the mine Are 2,769 Mt and 3.84 g/t Ag. any includcondias the original heavy-duty steel-cable nd. design shown the Kucing Liar may think. A Amamapare. An access road 2005, Au manufactures specific operating strong as you pit (final and t mill, passing 0.97 g/t eastern ments for the splice is not as surface and undergrou tely 50% reserves, Amamapare. the port to the ation budge expected to total in underground ies. The veyor belts for lose approxima mineable are capable ts the is gate explor tions, for example, always be designed at this facility two-ply belt can while a Gossan orebod ated by site connec million Belts produced en route. Tintos share, ($15 should and Big Ore when vulcanized, quality stanis domin tough ing Rio ediate mining? Belts with most in mind. district of its strength $21 million Timika airport by of the operators of satisfying extremely side of the ore bodies [Interm can lose 33-1/3%. , and those required approximately Rans share) with the safety Mining 7 is imporves three-ply belt installed East Zone (DOZ) the rt McMo ional be conveyed dards, and especially l splice can be belts will Ertsberg material robust reserto the aggregate TheInternat to dusty to for Freepo Deep Ore alterA mechanica coal mines. The er 2005 ns Truly flammable, Septemb the numerous additio than its vulcanized handling Zone (ESZ)] Zone (IOZ), of the up tant. Is it, for example,as precious metals in storage and faster and easier Stockwork orebodies high reserves During 2004, splice can take such also be installed Ertsberg probable in and/or valuable, the Dom native. The vulcanized to complete. It proven and round produc es? Is the material facilities at ports. Systems hours north, and Conveyor Belt ores, or concentrat with sharp or roundsouth. Underg to these orethe from six to eight Shanxi-Phoenix access Phoenix a belt back, trim lumps, and to the Then large or small set up between takes time to cut exploration is a joint venture belt ends together. tion and which is now loaded edges? steps, and fit the Systems Asia, comto consider the partConveyor Belt the appropriate It is also essential will the and its Chinese you must apply heat and From what height part of ContiTech, the belt under Group and Jingcheng Will the The ing conditions. pounds, cook onto the belt? manuthe belt to cool. ners Lu An Mining of the Shanxi-Phoenix material be loaded will be pressure and allow in the direction but also Anthracite Group. vulcanized splice material be loaded steel-cable belts total cost for the an angle? factures not only dollars, not includingnot conveyor, or at of the several thousand does multiply belts. capacity PVC and presses, etc. This What is the required t/h). Also, how the cost of the waiting (usually the downtime ace also conveyor system to and take into account run? This will crew to travel Splice the mainbr Manager - Heavy the conveyor fast will Market for the vulcanizing The amount of beltKevin Finnegan, undermine. belt affect capacity points out that set up at your parameters should a 1,220 mm wide Duty with Flexco mainteFinally, the physical belt conveyor flat or ing used to splice it can ground, effective . Is the conveyor mm or more and Are be considered can be 1,800 key goals - preventing complete. incline or decline? nance has two eight hours to and keeping repair by restrict does it have an require six to issues that would no part l splice is installed surprise belt failures, Does there any space The mechanica minimum. While methods. t, downtime to a one of several width of a conveyor?or does the length or l Mining 29 system is unimportan your crew in any line Internationa of the conveyor critical run in a straight October 2005 the conveyor among the most around curves? belt splicing is combiit need to travel notes that any Fenner Dunlop

e Conveying th message

Service units on the surface and underground

Prospects for 2006 Clean mineral processing

Freeport Indonesia the greatest in the world

epon is the project in first major mining Laos and beginning represents of a promis the industry ing mining there. The the largest projec Laos and private busine t is now the bigges ss in t private Oxiana is employer. exploring deposits for coppe in Thailand other parts of Laos r and gold and China and Prominent and is develo in Hill ping the South Austra copper-gold deposit in Managing lia. Owen Hegart y, Oxiana Director panies are notes, minin s generally often the pioneering. g comfirst to invest They are have been in countr recently ies which sidered to reformed or be risky. nificant Whilst thereare conchallen are siggreat opport ges, with this risk try and for unity both for the comes the compa host counhost countr ny. Benefit y s to the microeconomcome in terms of both improvement ic and macroeconom Above: Location ic Map tion effects s and significant Right: Oxiana demonstra. And benefit developed come in s to the the initial Sepon terms company gold project underexplore of first mover at a cost of $45 advantage million and potential. d terrains with in began operating great minera in January With little l 2003. The copper mining traditio project is mainly mount an SX-EW operation n, Laos, ainous producing a 236,800 copper cathodes km 2, which country, covers on site. the UK, is similar and has in size to a popula 5.7 million tion of just . The esting minera country does have interl potential resources with known At presen that include gypsum, t, the mining iron ore, sector is potash, tin, coal, in its develo precious gold. stones and stages, but ping since 2003 Sepon is when Sepon located in approximately commenced southeastern its operat 600 km Laos, ions, mining Vientiane. impact on has made Laos is still from the capital GDP. As as a Least , a big classified well the GDP Developed by the UN ing there as increas Sepon curren explains country. since 1993 ing about 15% that tly the first of the countr contributes clear goals the Lao Govern Hegarty of the Sepon during which time enue. By ment has to ys export deposits 2006 it is the econom move out of this were discov gold and coppe revestimated project will status and y has grown r although ered. The that the reduced high quality strongly deposi exports. account for more poverty too small and , were consid ts, The than 30% than a decade significantly to mining and government has of ered criteria and meet Rio Tintos . In the 1990s, for more identified minerals grew by mine the source of an real GDP Oxiana developroject was sold. size continued processing as one despite the annual average econom rate of ped ject at a ic growth the region sharp fall-off in growth 6.3% cost of $45 the initial gold pro. Highly prosp al crisis of operating million and during exports 1997-1999 in Januar Oxiana acquire ective began grew at and y 2003. has produc around 15% 16 Internat Since d Sepon ed more 2000. Rio ional Mining a year. from Rio gold at an than 300,00 then it Tinto Tinto in October average highly prospe had identified 0 oz of 2005 cash cost We have Laos as ctive and of $160/o already expand had been mine and z. ed the explorare further increasstudying the possibgold ility es in capaci ty. The gold of

S
S

Sepon s e sustaina ts model ble

Oxiana, an Aust ralian copper and gold and expl mining oration company, deve loped the copper Sepon and Laos over gold mines in years and the past five up to 60,0 now produces per cath 00 t/y of copode than 200, s and more gold in 000 oz/y of that coun John Cha try, dwick repo rts

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December 2005 International Mining 17

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P

Buckets, backhoes and more


Choosing between electric and hydraulic shovels, or backhoes, or wheel loaders, or. And what about bucket wear?
bed and can more easily control the dumping of loads to minimize wear and tear on the machines. Other major arguments that may steer the decision towards backhoe machines, he says, are the greater ability to dig selectively and the reduced swing angles in comparison with face shovels.

&H in the Excavator Selection booklet of its Peak Performance Practices series says, hydraulic and electric shovels each deserve fair consideration. The agile hydraulic is an excellent machine for blending materials and selective digging where frequent moves are necessary or electric power is lacking. It is a practical fit between [wheel] loaders and the electric shovel. That booklet devotes 48 pages to machine selection, looking at the pros and cons of hydraulic excavators and electric shovels see table below. However, never forget that wheel loaders also have their role to play, the most versatile of the loading tools available. And scrapers can provide extremely good economy in the right application. Many of the pros and cons of backhoes versus shovels have been well documented, and Dr Jrg Lukowski, one of Liebherr Minings Directors feels that the backhoe is the way of the future. In recent discussions with IM, he put forward some

Electrical wizardry
The application of AC drives in electric shovels has facilitated dramatic improvements in production rates, reliability, power grid compatibility, efficiency, maintenance cost, and system intelligence. Of these areas, Siemens suggest ongoing loading tool developments that will perhaps have the greatest influence on surface operations over the coming years. IGBT shovels and draglines using active front-end (AFE) technology will set new standards for dynamic performance, control of power factor, and minimal total harmonic distortion. This will reduce cycle times; increase reliability

interesting points in favour of the backhoe from the operators standpoint. A very important point is keeping the operator interested and alert. Standing on a muckpile operating a backhoe, operators often see the whole of the pit and can stay interested in the whole mine operation. An operator on a shovel sees little more than the face and each truck as it comes up for loading. From the equipment point of view, the backhoe operator has a great view into the truck

As noted in the CVRD article, much of Samarcos iron ore is loaded directly by wheel loaders onto bench belts in a mining method the company calls belt mining

18 International Mining December 2005

Machine Selection; electric (EMS) versus hydraulic (HMS) mining shovels Criteria Selection Priority Advantage Criteria Selection Priority Low High High High Advantage

A. Technical 1. Ambient Temperature Adaptability 2. Digging Forces 3. Ground Bearing Pressure (Static) 4. Machine Assembly Time 5. Machine Weight 6. Mobility 7. Power Selection Options 8. Power Supply Requirements 9. Technology Change Adaptability 10. Trail Cable B. Machine Operation 1. Cab Location 2. Digging Phase Controls 3. Ergonomics 4. Use of Propel to Maximize Fill Factors 5. Visibility High EMS

High High High Low High Very High Low High High High

EMS EMS HMS HMS Equal HMS HMS Equal Equal HMS

12. Rock Handling Capability 13. Truck Compatibility Very 14. Truck Loading Very 15. Working Dimensions E. Productivity 1. Availability 2. Capacity 3. Reliability Very High EMS F. Maintenance 1. Ease of Maintenance 2. Fueling 3. Planned Component Replacement 4. Preventive Maintenance Schedules 5. Reliability Indicators G. Environmental Impact 1. Cleanliness 2. Fluid Disposal 3. Greenhouse Gas Emissions 4. Spillage H. Commercial Considerations 1. Capital Cost 2. Cost Per Unit Loaded 3. Fuel Cost 4. Insurance Liability 5. Machine Life 6. Manufacturers 7. Project Life 8. Project Risk 9. Relocation 10. Resale Value 11. Support Infrastructure 12. Technology Knowledge

HMS EMS EMS EMS

Very High Very High

EMS EMS

Very High Very High Very High Very High High

EMS EMS EMS EMS EMS

High Very High High High

EMS EMS EMS EMS

C. Geology and Deposit Characterization 1. Bench Height High 2. Digging Material Layer by Layer Low 3. Drilling and Blasting Requirements High 4. Following Layers Up a Grade Low 5. Material Abrasiveness High 6. Selective Mining Face Digging Low D. Digging and Loading 1. Cycle Time Very 2. Debris Removal 3. Digging Below Ground Level 4. Fill Factors 5. Floor Cleanup 6. Floor Level Digging Reach 7. Material Discharge 8. Proximity to Face 9. Reach Very 10. Removal of Large Rocks from the Digging Face 11. Removal of Obstructions on the Mine Floor

EMS HMS Equal HMS EMS HMS

High High Very High High

EMS EMS EMS EMS

High Low Low Very High Low High High High High Low Low

Equal HMS Equal EMS HMS Equal HMS EMS EMS HMS HMS

High Very High Very High High High Low High High High High Low High

HMS EMS EMS EMS EMS Equal EMS EMS HMS EMS Equal Equal

Source: P&H

and lower capital costs associated with power grid infrastructure. Already, the reliable operations of AC shovel drives with AFE front end and IGBT inverters have been proven and we are seeing the expansion to smaller and larger shovel payloads. Siemens has been involved in the first gearless mining dragline with all AC drives. Maintenance stations that provide contextual, online troubleshooting will enhance on-site diagnosis and facilitate remote fault diagnosis to minimize the mean time to repair (MTTR) and maximize machine availability. Siemens SiRAS/MIDAS systems provide diagnostics, trend analysis and, in the future, autonomous operation. Quebec Cartier Mining (QCM) has just ordered another Bucyrus 495 series electric mining shovel for Mt. Wright mine in Quebec, Canada, where it will join two other 495 series and two 295

series shovels already operating at the site. Like its predecessors, the 495 uses a

Siemens AC - IGBT electric drive system. The AC system eliminates brushes, fuses

LeTourneau offers a range of electric drive wheel loaders for mines, ranging from the largest in the world, the L-2350,to the latest model, the L-950 Pit Bull (also available as a wheel dozer). Here is an L-1850 in action.

December 2005 International Mining 19

Loading tools
and RPC components that are high maintenance items on DC drive machines. A fully modularized electrical room ships directly to the field to facilitate the erection process. To further productivity, this 495 will be equipped with AccessDirect machine diagnostics. This allows for direct access to a machines electrical system by a Bucyrus engineer anywhere in the world. Machines in remote locations are as close as a modem or Internet connection. AccessDirect not only allows an engineer to view what is occurring on a machine to make a diagnosis, but in many cases adjustments or repairs can be made without the need of going to the machine. For machines in remote locations that would otherwise require hours and sometimes days to reach, this can be critical in maintaining a machines productivity. AccessDirect will also be upgraded on this 495 to include two additional systems, AccuLoad and MIDAS. AccuLoad provides for the accurate weighing of each individual dipper load. MIDAS provides a means for production tracking and maintains ongoing detailed records of the various machine motions and activities. The result is a history of the machines operation allowing managers to track and set benchmarks for improving productivity. After 15-20 years of around-the-clock operation in the tough environment of open-pit mining, these machines start to feel their age. Electrical parts are particularly vulnerable - their performance deteriorates, and availability and productivity fall. ABB is a market and technology leader in shovel renovation, offering complete electrical revamps with AC or DC drives, drive control, frequency converters with insular gate bipolar transistor (IGBT) technology, intelligent control packages and visualization. CVRD, for instance, reported an increase in productivity of 10-20% and a reduction in MTTR from three hours to one hour within weeks of ABB revamping a 16-year-old BE 295 B11 shovel at the Carjs Range iron ore mine. Maintenance Manager at the mine, Carlos A. Favato, said: This project ends a nightmare of 16 years [of unscheduled downtime]. With this drive and control package, we bought the most competitive system offered to us. Not surprisingly CVRD quickly placed orders with ABB to revamp the four other shovel excavators at the mine. ABB says a revamp is a fraction of the cost of a new machine, yet achieves the same standards of availability, productivity and estimated service life. crushing. In both instances the action of the material on metal is similar to that of a cutting tool. Gouging abrasion also places a premium on toughness. Sometimes this is at the expense of harder and more abrasion resistant alloys. Carbide containing alloys are used successfully, when supported by a tough alloy, preferably austenitic manganese. The Tuffstudds Wear Protection System from Sulzer Metco (Canada) provides wear protection for all types of shovel buckets. It says the expensive task of replacing bucket components can be reduced by protecting them with Tuffstudds. No matter what size of shovel bucket, Tuffstudds can help in the fight against abrasion. Tuffstudds can be used to: q Give extra protection to high-wear areas such as lips, cutting edges and tooth adaptors q Make upper and lower outside wing shrouds last longer q Extend wear life on inside wing shrouds, walls, floor and back door q Protect underside lips, tooth adaptors and wear bars. Metalogenia offers the MTG Kingmet series for loader and excavator buckets, for instance the Weld centre/Heavy duty size 250 with mechanical wear cap for excavators in applications where there is extreme abrasion. The top of the adapter is protected from wear. Then there is the E Design (Extra) for digging in

Bucket wear
Gouging abrasion is the most common cause of shovel bucket wear. The resulting wear can be extreme when high-stress or low-stress abrasions are accompanied by some degree of impact and weight. The metal surface receives prominent gouges and grooves when massive objects (rocks) are forced with pressure against them. A low velocity example of this is when a dragline bucket digs into the earth and a high velocity example would be rock

Liebherr is launching its R 9250 Litronic model, a new 250-t mining excavator.

20 International Mining December 2005

loose ground and particularly free-digging of abrasive, unblasted rock where good penetration is required. The tip has a penetrating profile. There is a rib on the box to improve material flow, and another rib to guarantee self-sharpening. The stabiliser further improves self-sharpening. Caterpillar offers advice on loading tools based on its complete Cat GET (Ground Engaging Tool) systems. This provides useful information whatever the make or type of loading machine. For wheel loaders the GET systems include bucket edges, tips, adapters and segments. These help machines apply full force to the work while protecting components from the punishment of severe applications. To protect critical wear areas, Caterpillars exclusive Abrasion Resistant Material (A.R.M.) is available on a variety of machines.

.or is the scraper the most efficient loading tool. It is in the right application. Seen here, Cats new 657G wheel tractor-scraper.

994s big brother


Liebherr is launching its R 9250 Litronic model, a new 250-t mining excavator. The R 9250 will succeed the R 994 Litronic, which has been in production since 1986 and has enjoyed great success, with more than 200 units sold. However, while the 994 is 20-year old technology, it is a simpler machine and still in great demand the 994, and therefore will not disappear immediately. Manufacture of the 994 has been transferred to Brazil where one 994 a month will continue to be built. At the same time, the main mining excavator facility in Colmar has been expanded to cope with high demand. Technologies already proven in the larger Litronic excavators, the R 994 B, R 995 and R 996, have been incorporated in this new mining excavator in particular, the advanced design of the electronic, electrical and hydraulic systems, and the robust and durable specification of the mechanical sections such as the constructional steelwork. Power is from a 12-cylinder Cummins turbodiesel engine rated at 960 kW. The standard version is equipped with a 15-m3 backhoe bucket or a 15-m3 bucket suitable for material densities up to 1.8 t/m3. With a 15% larger digging bucket than the R 994, 42% higher swing torque and exceptional digging capabilities, the R 9250 will deliver even greater productivity. Three passes are required to load an 80-t truck, or four to five buckets for a 120-t truck. The drivers cab on the R 9250 is identical to the well-proven R 996 in size, specification level and ergonomic design. It is fully air-conditioned and the driver is protected against sunlight and noise by blinds, tinted windows and high quality sound insulation. The seat is adjustable for the individual size and weight of the operator. The generously dimensioned

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December 2005 International Mining 21

Loading tools
glass area provides an excellent view of the work area. This level of comfort and the ergonomic layout provide ideal conditions for maintaining maximum operator efficiency throughout the shift. The electro hydraulic control system ensures high precision and makes the machine easy and safe to operate. The driver can obtain up-to-the-minute operating data via the ergonomically designed monitoring display. Improved serviceability was an important goal in the development of this new large hydraulic excavator. The engine and pump compartment is spacious, allowing service personnel access in a standing position and offering easy access to the drive components for maintenance. The passageway between the engine compartment and the counterweight also cuts down service time. All service points on the R 9250 are arranged for easy access and where possible are assembled at a central point. For example, the hydraulically activated service panel located at chest height at the rear of the uppercarriage offers optimum access to the service points for lubricants, various oils, windscreen washer fluid, oil change, and for fuel. The first production model R 9250 is currently undergoing exhaustive field trials at a limestone operation in France, where all aspects of the new design are being put to the test under real conditions a tough test as the machine is freedigging unblasted limestone. This open pit is very convenient for the factory in Colmar from where test engineers are carrying out many measurements on a variety of stress points in order to establish via finite element calculations the real-life long-term performance of the steel structures. Lube systems and crawlers are also under scrutiny. During this sixmonth continuous trial, experienced service and sales staff have the opportunity to thoroughly familiarise themselves with the excavator. The final fine-tuning of the machine will therefore incorporate not only the results of a host of technical measurements but also the critical opinions of experienced specialists. Already a field engineer from Liebherr Australia, one of the companys strongest mining markets, has spent a significant amount of time of the R9250, providing input from his perspective. The
22 International Mining December 2005

next two R9250s on test are likely to go to Australian clients. With the R 9250 Litronic, Liebherr is changing the model numbering of its mining excavators. The initial 9 continues to be the product identifier, but will now be followed by a three-digit number representing the size category for the particular excavator. For instance, the 994 B will next year be renamed the R9350 Litronic.

A new O&K RH 120-E face shovel was commissioned in September at Lafarges Mountsorrel granite operation in the UK.

The Yanacocha seven


In late 2004, Newmont Minings Yanacocha mine in northern Peru ordered its sixth Hitachi EX5500 front shovel. This followed purchase of an EX2500 backhoe and five previous EX5500 shovel purchases. The seven Hitachis are the primary loading-fleet for this large open-pit, heap-leach gold mine. The shovels and the backhoe have been under a full maintenance/repair contract with Hitachi since they arrived on-site, ensuring high, guaranteed levels of mechanical availability at competitive rates. This agreement has been extremely beneficial for Hitachi, HCMA Peru, and Yanacocha - thanks to the excellent relationship that has developed among the three parties. In April 2004, another five-year agreement was signed that covers the entire Hitachi fleet. Availability on the fleet has been in the low 90% range. The mine plans to run the EX5500 shovels for about 90,000 hours. They typically operate at an altitude between 3,600 and 4,000 m, usually loading Caterpillar 793 haul trucks. Depending on material density, the shovels five- or six-pass load the 233-t 793s and produce some 23 Mt/y (dry). All but one of the EX5500s use 29-m3 buckets and operate on bench heights of 10-12 m. A 30.6-m3 bucket has recently been installed on one of the shovels that

The first P&H 4100XPB is erected at Spence mine in Chile, one of three 4100XPB shovels ordered by BHP Billiton for this new development in Northern Chile. The three shovels were delivered with four dippers - two of 46.6 m3 capacity and two of 50 m3 capacity. They are also equipped with the latest generation of performanceenhancing systems, including the P&H Loading Control Center and P&H Centurion System. The Spence shovels will also benefit from monthly predictive diagnostics from P&H MinePro Services

With an operating weight of some 258 t and powered by a 940 kW Komatsu SSA12V159 12-cylinder diesel engine, Komatsus PC3000 is a powerful shovel. Standard shovel and backhoe bucket capacities are 15 m3, generally loading an 85-100-t truck in four passes and a 150-t truck in six passes. The backhoe version features a breakout force of 850 kN, tear-out force of 800 kN, a ground level reach of 14.85 m and a maximum digging depth of 7.8 m. The shovel version offers a breakout force of 1,000 kN, crowd force of 1,100 kN, and maximum dumping height of 10.2 m.

operates in lighter material, to improve the pass match. The EX2500 backhoe is used in both production and wall-trimming applications.

Scrapers, the best earthmovers?


Caterpillars new 657G wheel tractorscraper, designed for mining jobs, is well suited to overburden and waste stripping tasks as well as topsoil removal and stockpiling. The tandem-powered 657G uses the Cat C18 engine for the tractor and the C15 engine for the scraper. Both feature ACERT Technology for reduced emissions. Both engines feature Mechanically-actuated Electronically Controlled Unit Injection (MEUI). The C18 in the tractor is rated at 447/421 kW and the C15 in the scraper is rated at 337/306 kW. These dual power capabilities enable the engines to produce more power in higher gear ranges for improved gradeability and reduced cycle times. Basic 657G specifications Heaped capacity Rated load Maximum travel speed Maximum cut depth Maximum spread depth Width of cut outside router bits 33.6 m3 47,200 kg 55.7 km/h 425 mm 680 mm 3,846 mm

This machine also incorporates a new cooling system that reduces clogging, the G-Series cab and controls for superior operator comfort and efficiency, enhanced service access, and component changes that boost reliability and durability. The 657G replaces the 657E and is the largest in Cats line of eight wheel tractor-scrapers. It can be equipped with a standard bowl or an auger for improved self loading and a broad material appetite. Heaped bowl capacity is 33.6 m3. The 657G is designed to be push loaded by a D10 or D11 dozer, self loaded or loaded in a push-pull configuration. The push-pull arrangement allows two scrapers to assist each other when loading. IM
December 2005 International Mining 23

Oil in the
Times have never been better for Canadas oil sands mines, as John Chadwick discovered.
The Alberta Energy and Utilities Board estimates current established reserves [of oil sands] defined as those that are recoverable using current technologies at some 175 billion bbl placing Canada second only to Saudi Arabia in known economic reserves. Weve only seen the tip of the iceberg in terms of oil sands production with only about 3 billion bbl produced to date and that over a span of almost 40 years. It is expected that oil sands related production will double in the next

n 2004, Canadas oil sands production exceeded 1 million barrels per day (Mbbl/d), and will rise much further in coming years. Reviewing the oil sands sector earlier this year, Charles Ruigrok, Syncrudes CEO noted that Canadas oil sands is a tremendous resource that has the potential to help reduce North Americas growing dependence on offshore sources of crude oil supply. Canada is the worlds third largest producer of natural gasand the ninth largest producer of crude oil. The oil and gas industry is the largest private sector investor in Canada. And Canada is also well positioned to grow its energy sector. We enjoy secure and efficient access to markets we can readily access our resource base and our energy industry is globally competitive.

10 years and that it will continue to grow. Some projections suggest production could reach as much as 5 Mbbl/d. About 80% of the estimated 300 billion bbl of recoverable bitumen will require some

Main picture: At Albion Sands Muskeg River, 400-t Caterpillar 797B haul trucks carry raw ore to the Thyssen Krupp crusher.

Canadas massive oil resource

e sand pit
sort of in situ process as they are too deep to economically mine. Costs are higher than those for conventional production, but the oil sands industry has a number of competitive advantages, as Suncors Mike Ashar, Executive Vice President, explains. First, very little exploration is required to establish the location, size and quality of reserves. At minimal cost, the location and size of oil sands deposits can be determined with a high degree of accuracy. Second, overall recovery rates at about 90% are much higher than for conventional crude. Combined, these two considerations offer a known and stable reserve base with long-term recovery certainty. Third, the Alberta and [Canadian] federal governments have introduced royalty and fiscal regimes that recognize the large scale, up-front capital investments required for oil sands development and the long-term nature of project payouts for both developers and the economy as a whole. Fourth, we have direct and secure access to the US market. There are many challenges facing the oil sands industry, not least that of environmental stewardship

Oil sands are a mixture of sand, bitumen and water. Each grain of oil sand has three layers: an envelope of water surrounding a grain of sand, with bitumen surrounding the water to form the outer layer. Bitumen is a heavy viscous crude oil, which contains high amounts of sulphur and will not flow through rocks, wellbores or pipelines in its naturally occurring state. However, it can be processed into high quality, synthetic crude oil (SCO) that is in demand for upgrading to gasoline and jet fuels and other refined products. Most of Canadas oil sands are found in Alberta, and the highest quality resources are the Athabasca deposits of northern Alberta. The mineable Athabasca oil sands are found in thick seams 17 to 50 m below surface, making them ideal for open pits. Hydraulic face shovels and backhoes, and electric shovels load the bitumen ore into the largest haul trucks available. All the worlds large truck manufacturers, except Belaz, have units in Athabasca.

The newest of the mines is Muskeg River, where ore is dumped into a crusher to reduce it in size to lumps less than 410 mm, and then fed to rotary breakers for further crushing to less than 50 mm. Waste rock is rejected and warm water (40C) is added to create a slurry, which is pump to the oil extraction facility. Western Oil Sands is a 20% partner in the $5.7 billion Athabasca Oil Sands Project (AOSP), along with partners Shell Canada (60%) and Chevron (20%). AOSP is one of the largest projects in Canada and among the top 10 in the world in terms of size and complexity. Muskeg River mine lies 70 km north of Fort McMurray, Alberta. Ore is mined and bitumen is extracted from the sand, diluted and shipped via pipeline to the Upgrader. The initial capacity is 155,000 bbl/d.

Bucyrus 495HF shovels are equipped with wide crawler links to give the shovel the ability to operate in the soft underfoot conditions found in oil sands

AOSP Expansion
The Muskeg River mine expansion includes developing additional areas on the west side of Lease 13 and Lease 90, adding another bitumen extraction train to the existing plant and a number of de-bottlenecking projects. These plans will increase the capacity of the mine from 155,000 to some 300,000 bbl/d. This, combined with the Jackpine mine approval, received in 2004, would provide the AOSP with regulatory approvals for mining developments encompassing all of Lease 13, 90, 88 and 89, totaling 500,000 bbl/d of bitumen. Western is providing the AOSP with mining expertise, project management and financial stewardship. Jackpine phase one is likely to start in 2008. It will be a new, stand-alone 200,000 bbl/d mining and extraction project on the eastern portion of Lease 13. Development will follow expansion of the western portion of Lease 13. Then Jackpine phase two will access the resources on Lease 88 and 89 and provide an additional 100,000 bbl/d of production.

and on the Horizon


Teck Cominco recently became the first major mining company in the Athabasca oil sands (excepting BHP-Billiton which pulled out some years ago and its expertise became Western Oil Sands). Teck Cominco is in with UTS Energy and Petro-Canada for a 15% interest in the Fort Hills project. Fort Hills, located about 90 km north of Fort McMurray, is a long-life asset with 2.8 billion bbl of bitumen resource. Regulatory approvals are in place for up to 190,000 bbl/d of bitumen production, with initial start-up by the end of the decade. Plans include an integrated upgrader. Recent activity in new mining projects has been strong, as might be imagined with the price of oil. There is Canadian
26 International Mining December 2005

Natural Resources Ltds (CNRL) Horizon project 70 km north of Fort McMurray, where CNRL owns and operates leases covering 46,540 ha. Drilling on the leases indicates an estimated 16 billion bbl of bitumen in place, with approximately 6 billion bbl recoverable. The plan sees three phases of development over a seven-year period from 2005 through 2012. SCO will be produced during the second half of 2008 ramping up to a rate of 110,000 bbl/d. The second phase is expected in 2010 with an increase in production of 45,000 bbl/d. The third and final phase is expected in 2012 and will bring total production to 232,000 bbl/d of SCO. This will require the mining of 1.152 Mt/d of material to yield 521,000 t/d of oil sands. Imperial Oil announced the filing of regulatory applications in July for the Kearl Oil Sands project. This would be located on portions of oil-sands leases held by Imperial and ExxonMobil Canada in the Kearl Lake area, about 70 km north of Fort McMurray. The current plan is to develop in a staged manner, with an initial mine train with production capacity of about 100,000 bbl/d. On October 12, Synenco Energy released an updated Public Disclosure Document for the Northern Lights project, an integrated project to be located 100 km northeast of Fort McMurray. It is in the design and engineering stage and is jointly owned by Synenco Energy and SinoCanada Petroleum. When fully operational, Northern Lights will produce 100,000 bbl/d of light, sweet SCO. Two phases of development are expected; each phase is targeted to produce 50,000 bbl/d, with the first targeted to come on stream in late 2010. Deer Creek holds an 84% working interest in, and is the operator of, the Joslyn project. Its estimated life is more than 30 years, encompassing three phases of Steam Assisted Gravity Drainage (SAGD) recovery and four stages of oil

sands mining and extraction. The staged development of both SAGD and mining resources is expected to produce more than 200,000 bbl/d. Each mining phase is expected to put 50,000 bbl/d into the mix and the four are expected to come on stream in 2011, 2014, 2017 and 2020. Fort McKay First Nation has publicly discussed plans for a 35,000 bbl/d mining project near the settlement of Fort McKay. Timing at this stage is uncertain.

The establishment
Currently there are three surface mining operations, Syncrude (the largest of the miners), Suncor and Albian Sands (Muskeg River). Last year, production at Syncrudes operation, reached 87.2 Mbbl, or about 238,000 bbl/d. The company is in the midst of a major expansion that will see capacity grow to 350,000 bbl/d in mid 2006, maybe even to 500,000 bbl/d at some point in the future. Oil sands mining is messy, but the companies involved make extensive efforts to reclaim the land they disturb. Syncrude, for example, is an international leader in reclamation research, and this work is proving very helpful in reclaiming mining land back to a natural state. One of its more successful reclamation projects involved the repatriation of Wood Bison to the area in 1993, after an absence of more than 100 years. What Syncrude aimed to do was test the viability of reclaimed land for large animal habitat, and it has been a roaring success, according to Ruigrok. Our herd now averages about 300 head of award winning animals, and it has a 99% calving rate. This project is a joint venture with the neighboring Fort McKay First Nation, which co-manages the bison ranch. Suncors crude oil production is about 260,000 bbl/d, with downstream refining capacity for about 160,000 bbl/d. Suncors oil sands leases hold a potential 11 billion bbl of synthetic crude oil after upgrading. Suncor plans to invest about

$2 billion/y over the next several years with most of that sum directed to oil sands. It plans to take production to 500,000 bbl/d around 2010. Suncors Ashar explains some of the challenges to growth. These include: q Controlling the operating cost of daily production and the capital costs and related labour demand to build and operate the facilities q The environmental impacts of a growing industry q Pipeline capacity to get the oil sands crude to markets He notes that operating costs for oil sands are higher than those for conventional production a median of about $20/bbl for upgraded light crude. While that is considerably higher than average global lifting costs, it comes with an exploration cost of near zero, compared to a global average of about $11/bbl. On a full cycle basis that means that oil sands production is competitive with domestic conventional crude. Operating costs are, however, constantly under pressure in particular from the rising cost of natural gas energy used to process the heavy crudes into refinery ready products. When we look at future opportunities and how fast we can bring on production, we need to remember that these are massive projects. Projects take five or more years from conception to completion. And more than time they take money and skilled labour. As an industry, we are looking at some $35 billion in new construction in the oil sands in the next five years..

Hitachi developed the ultra-large hydraulic excavator EX8000 as the largest class in the world, with an operating weight of 780 t and a shovel bucket capacity of 40 m3

Leviathan loaders
The projects in the oil sands are massive, and so is the mining equipment. Hitachi developed the ultra-large hydraulic excavator EX8000 as the largest class in the world, with an operating weight of 780 t and a shovel bucket capacity of 40 m3. The machine exceeds the operating weight and loading shovel bucket capacity of the EX5500-5 by 260 t and 11 m3, respectively. Hitachi says it is the perfect match for 280-t trucks. It boasts awesome power and productive output as the largest class ultra-large hydraulic excavator in the world, with an arm crowding force of 2,870 kN and breakout force of 2,230 kN. The EX8000 features the latest technologies and structure, with an operating speed equivalent to the EX5500 despite the larger body. It features a roomy, comfortable cab with living quarters! The rear of the wide cab acts offers living space with a table, microwave and other conveniences to ensure comfort in even the harshest mines, like those in the Athabasca oil sands. The cab is almost twice the size of the cab on the EX5500.
28 International Mining December 2005

Electronic wrist controls ensure light, smooth manoeuvring with a light touch, thereby reducing fatigue over long periods of operation. Four wide-angle cameras, located on the two back corners as well as on the right side and under the cab, feed a colour monitor to give the operator an excellent split-screen view all around the machine. The EX8000 shares a common design with the EX3600-5, with shovel-type tracks and triple-roller swing bearing, and employs proven, highly durable systems and components. Furthermore, it was designed for maintainability and accessibility with large access doors, large open spaces and a flat floor around the engine for easy maintenance and inspection, as well as an electric retractable ladder allowing easy access to equipment. It really is a monster, when the bucket reaches its maximum cutting height, it can touch the top of a six-story building. It uses two Hitachi S16R engines that generate combined power of 2,800 kW. Its overall height is 9.9 m and the undercarriage length is 10.5 m, with track shoes 1.85 m wide. Its maximum digging reach is 18.5 m. The first EX8000 underwent field tests in the oil sands. Dean Coleman, Sales Manager with Hitachi dealer Wajax Industries was very impressed with the EX8000 and the support the Hitachi organization has given us. Were very thankful to have a great customer like North American Construction Group who is dedicated to the Hitachi line. O&K Minings RH 400 hydraulic shovel was developed especially for the oil sands. It has twin engines, either Cummins QSK60s or Caterpillar 3516s. Its fuel capacity is 16,000 litres, allowing 24-h continuous operation without refuelling. The bucket capacity is 80-90 t and maximum digging height 17.1 m. This monster uses 10,000 litres of hydraulic

fluid. Eight main pumps move 8,000 litres/min and produce a breakout force of 2,100 kN. The latest Bucyrus order for Fort McMurray is for two 495HF electric mining shovels for Syncrudes Mildred Lake mine. The 495HF has proven to be an extremely productive and reliable tool in oil sands. Bucyrus 495 High Performance Series Shovels (495HF high flotation and 495HR hard rock) carry the new SuperCab, designed for operator comfort, efficiency and work-face visibility. Increased power allows the 495 a 100-t single pass capability. It can provide up to 109-t capacity when specified. Powered by the latest Siemens AC-IGBT drive system technology, the brushless AC motors and fuseless drives are setting new standards for reliability and efficiency in the unique oil sands environment. The four 495HF shovels at Albian Sands Muskeg River mine are very successful. The 495HF has the field proven lower works design of the popular 595B shovel in operation at other oil sands operations. It is equipped with wide 3.556 m crawler links, which give the shovel the ability to operate in the soft underfoot conditions found in oil sands. The addition of a Bucyrus FastFil dipper with new spade lip design makes this a most productive electric rope shovel. The dual output planetary hoist and swing provide for reduced maintenance as compared to single pinion designs. The optimized stress-relieved boom structure maximizes structural life (an exclusive feature.) The electrical system is second to none in the industry, states Mike Onsager, Bucyrus Director of Electrical Engineering. P&Hs 4100TS shovel is another popular machine around Fort McMurray, operating at 15,000 V. Its working weight is 1,351,558 kg and its suspended load capacity is 154,360 kg. The dipper capacity is 47.4 m3 and the boom length,

Canadas massive oil resource


21.34 m. Its travel speed is just 0.84 km/h on crawler shoes of 3.54 m. Two new P&H 4100BOSS shovels have joined two other P&H 4100BOSS machines and two P&H 4100TS shovels at Suncor. The new machines will bring the total of P&H Model 4100 shovels operating in the Canadian oil sands to 17. Suncor put the first P&H 4100TS oil sands machine to work in October 1998. Since then, this machine has averaged an impressive 7,300 gross operating hours a year in this challenging application. among the largest in mining and serve two major functions: levelling the land at the overburden dump and working above the shovel/truck operation to push material to the shovel. In the winter, when the oil sands freeze and become very hard, they serve the added purpose of ripping through the frozen sand. In an environment where high availability and large production is demanded, giant machines like Komatsus D475 offer the blade capacity and pushing power required to keep up with demand both above the shovels and in the reconstitution of overburden (most often for dam construction). One reason Suncor chooses larger class dozers is the productivity required to keep up with the very large loads of dirt coming off the haul trucks. It takes a lot of pushing power, and big dozers have the productivity to keep up with overburden being produced by big shovels. Komatsus D475, for example, is equipped with a standard U-blade with a 34-m3 blade capacity. Ground Engagement Tools (GET) such as blades and rippers, along with a dozers undercarriage, are among the items that wear excessively in the abrasive, sticky oil sand and require frequent overhauls (hardfacing) and replacement. All the earthmoving equipment in the oil sands is subject to extreme wear. Oil sand could have been designed to be a grinding compound something really hard put it in a matrix with some real sticky material to get good contact. In a hard rock mine a 12-14,000-hour undercarriage life would not be uncommon. In the oil sands, it is more like 2,500 to 3,000 hours because of that wear. Tailings dozers endure really nasty working conditions. The dozers at work in tailings cell construction are of a size class generally associated with heavy construction, but outfitted with unique features that make them a perfect match for this mining application. Suncor relies on low ground pressure dozers such as Komatsus D85PX-15 (27,550 kg) and D155AX-5 (39,193 kg). Larger dozers similar in size to the D475 will come into the area first to build a dry dike on the four sides of the cell roughly 5 m high. A spill box is placed strategically on one side so that the water portion of the tailings slurry can escape into the pond, while the D85s and D155s then work to level and pack the solids as they are pumped into the cell. While described as solids, the material these dozers are working on is anything but solid, requiring a number of alterations to the machine that make them fully operational in this substance and safe for the operator. Components such as the radiator, air conditioning condensers, coolers, etc., all have to be mounted on the top of the cab. These machines are typically running anywhere from millimetres to, at the extreme, 0.5 m deep in this slurry. Conventionally placed radiators mean machines are constantly and perpetually overheating by getting plugged up with very fine clay particles, bitumen and heat a deadly combination to plug up a cooling system. Safety is a prime concern, with the risk of a dozer becoming submerged in the slurry being very real, these machines come equipped with an escape hatch on the roof of the machine for operators to make an easy, safe exit. Every 500 hours, oil sands dozers spend 12 hours in a steam bay being washed, scoured of sand and thoroughly inspected for excessive wear on the tracks, GET and structural components. IM

Monster movers
Most of the mining industrys largest haul trucks can be found in the oil sands. These include Komatsu 830Es (218 t), Komatsu 930Es (290 or 308 t), Caterpillar 797s (330 and 345 t) and 370-t capacity Caterpillar 797Bs and Liebherr T 282 Bs. Empty, the Caterpillar 797B weighs 623,690 kg. It is powered by the 3524B Series, 24cylinder diesel engine to give a maximum speed of 67 km/h. It features independent, self-contained, oil-pneumatic suspension cylinders on each wheel. It is 7.6 m high, 14.5 m long and the body width is 9.8 m. Its fuel capacity is 6,814 litres. The engine output of the T 282 B is 2,013 - 2,722 kW. The maximum operating weight of this monster is 592 t and its maximum travel speed is 64 km/h. It employs a Siemens/Liebherr AC drive system. One tyre for a 370-t truck costs over C$35,000. Each tyre is 4 m high and weighs more than 15,000 kg. Ideally each tyre will have a life span one year to 15 months. Waste tyres are then re-used as cattle feeders, childrens play ground features, and perimeters at look out areas at the mine sites.

Defiant dozers
The bulldozer is one of the workhorses of the oil sands. It toils both in the abrasive sand above each shovel and in the tailings at the end of the extraction process. A closer look at the day-to-day workings of a Suncor oil sands dozer shows how these are some of the hardest working machines on earth, handling one of the heaviest, most abrasive materials encountered by equipment anywhere. The main production dozers at Suncor are

Komatsu D475 dozers are popular in the oil sands, where they cope with very abrasive conditions

Milestones

January milestones in mining


1st, 1970 the US Environmental Protection Agency (EPA) is born. 1st, 1974 Cerro De Pasco is expropriated and becomes Centromin (Peru). 1st, 1994 Newmont Mining and Newmont Gold, combined assets to form a unified worldwide gold company. Shareholders of both companies had identical interests in the reserves, production, and earnings of Newmont Golds operations. 4th, 1933 Earl Finning had managed to secure a business loan as well as the sole distribution rights for Caterpillar products and services for British Columbia. On that day the Finning Tractor & Equipment Co was established. 7th, 1919 Northgate was incorporated, under the name Kirkland-Hudson Bay Gold Mines. In 1958, its name was changed to Northgate Exploration. 19th, 1924 First board meeting of Mount Isa Mines. 24th, 1848 James Marshall discovered gold on the property of Johann Sutter near Coloma, California. It was the first gold find in California. A builder, Marshall was overseeing construction of a sawmill on the American River. 26th, 1905 the 3,106-ct Cullinan diamond is found in the Premier mine, South Africa. 27th, 1960 Unit Rigs prototype truck rolled out formally and the first production models entered service in the last half of 1963. The truck was an immediate success gaining market share steadily. 29th, 1968 An initial agreement was signed between the Indonesian Government and Inco following the cabinets decision to accept Incos proposal regarding nickel deposits on the island of Sulawesi. 30th, 1942 start up of Phelps Dodge Morencis new concentrator. 1859 George A. Jackson made the first major discovery of gold in Colorado, USA, at the confluence of Chicago Creek and Clear Creek in Idaho Springs. 1872 Charters Towers goldfield in Northern Queensland, Australia, discovered. 1902 Australian mining engineer Tom Davey discovers Kabwe (Broken Hill), Zambia. 1917 Takeuchi Mining Industry (founded in 1894) established Komatsu Iron Works to manufacture machine tools and mining equipment for in-house use. 1948 Having obtained the original designs of a continuous miner, Joy developed two prototypes to be known as 2JCM models, the first going into service in this month. 1951 After mining nearly $6 million worth of gold, Independence mine was closed by Alaska-Pacific Consolidated Mining Co, and a chapter of Alaskas gold mining history came to an end. 1981 Gold hits $850/oz! 1995 Phelps Dodge Candelaria mine ships its first copper concentrate. 1996 Komatsu established Demag Komatsu (renamed Komatsu Mining Germany in February 1999) in Germany. Each month, IM publishes the Mining Milestones of the following month. Please submit entries for your company to john@im-mining.com. Entries must include the month, and ideally the day, of the event.

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32 International Mining December 2005

Trackless equipment

Mechanization in the deep


John Chadwick looks at LHDs, underground trucks, drill jumbos and support units better underground roads, fuel cells

rackless machines continue to evolve and become more productive. Nevertheless, it is disappointing to observe the number of underground (and surface) mines that have yet to embrace correct road maintenance. No underground machine will perform to its full potential if the haul roads are not of good quality even if the task is only moving a jumbo from one face to another. Furthermore, poorly maintained roadbeds are also expensive when trackless vehicles succumb to premature wear and tear. The tyre shortage is not confined to surface equipment and it is never good economic practice to shake machines around more than is necessary. Recent diesel technology developments have made trackless machines safer, more efficient and more cost-effective than ever before. To achieve their full potential, good underground roads are essential, especially with the current tyre supply challenge. Getmans RDG-1504C Roadbuilder incorporates many of these important advances to help create quality roadway

T
Produce underground roadbed material with MTIs HydraCrusher.

systems. It is a complete road maintenance and road building machine that rips up road surfaces, spreads gravel and grades, creating working roads for other equipment to pass. Typically youve got a mess: sloppy, muddy, hard-going conditions, says President Dana Getman. The best thing is to come along and keep that clean. The Roadbuilder goes through the mess and makes it flat. It just does a lot of heavy-duty maintenance work. One significant Roadbuilder technology development is Getmans exhaust chiller that reduces exhaust temperatures to below 150C and reduces maintenance and exhaust filter costs. The new design features an air-to-water shell and tube heat exchanger. Hot exhaust gases are directed to an inlet port in the exchanger shell and passed over finned tubes carrying water/glycol antifreeze. The fins and tubes transfer exhaust heat to the antifreeze, which then exits to be cooled by a fan-cooled radiator. Then the

The solid steel Caterpillar front axle on Getmans Roadbuilder has a 32 oscillation, 18 wheel lean and 50 wheel-turn while chain box final Caterpillar drives are splined to the heavy-duty, no-spin Caterpillar rear axle.

antifreeze circulates back into the shell and the cycle starts again. A fin redesign from previous chiller designs reduces exhaust gas temperature from between 430 and 540C down to between 66 and 120C and increases the water/glycol antifreeze temperature only 21C (from 50 to 90C). Getman says that compared to other exhaust cooling technologies, its new chiller delivers substantial cost savings. A fibreglass exhaust filter is also new, reducing the risk of fire and poisonous fumes that can endanger miners health. Diesel exhaust temperature spikes can burn adhesive filters and release toxic fumes. The new filter, from Filter Service and Testing, uses metal straps to hold the end caps onto the filter, rather than adhesives. A special, heat-resistant fibreglass foam gasket seals the caps and provides a tight seal on the filter element. The gasket is rated at 650C; higher than the 480C a diesel exhaust can reach. . Replacing only the filter element offers mines an economical solution to filter maintenance. Getman is the first manufacturer to install the filter on its mining equipment, and will use it in conjunction with the exhaust chiller. This is another important step in our efforts to lead the way in increasing safety, Getman said. By adding this innovative filter to our exhaust chiller system, well be able to further improve air quality and lower the risk of fires.
December 2005 International Mining 33

Toros T60 aims to provide the best possible ownership cost, a truck that fits into existing tunnel sizes, raises operator safety to a new level and is easy to adapt to existing operations.

Of course, diesel engines have been upgraded to make them more efficient and cleaner. The Roadbuilder uses a fourcylinder, turbocharged, aftercooled; Tier 2 Detroit Diesel OM904 diesel engine rated 110 kW at 2,200 rpm. The new electronicallycontrolled smaller engines include design improvements such as cylinder head/ combustion chambers and high-pressure unit fuel injectors to deliver similar or more power than older engines. Electronic engines constantly adjust the timing and duration of fuel injection relative to operating conditions and external factors such as intake air temperature, intake boost pressure, coolant temperature, throttle position, engine speed and loading. This optimized tuning reduces emissions, fuel consumption and maintenance while enhancing engine protection and diagnostics. Its clean, but it moves dirt. Getman says the RDG-1504C Roadbuilder moves more dirt than any motor grader available in the USA. It produces more than 7,120 kg of tractive effort while applying more than 6,600 kg of working effort into the 3.7-m Caterpillar 120H mouldboard blade. Roadbed maintenance can be expensive if mines have to hoist waste rock to surface for crushing and then send it back down for grading and top dressing. Mining Technologies Internationals (MTI) HydraCrusher, an LHD bucket with a built-in, hydraulically operated crusher is one solution. Its much cheaper to handle waste underground and create a stockpile of roadbed material. Adjustable jaws chew coarse material of up to 305 mm and crush it to any desired size down to 19-mm
34 International Mining December 2005

material for top dressing. The bucket, doubling as a hopper, picks rock from a muck pile. The rock passes through the

jaws and the resized material falls to the ground. A quick-attach design allows the unit to be easily fitted to or removed from the LHD. We also offer a grader blade and a compactor so you can use the same vehicle to do all of your road maintenance, rather than have a fleet of equipment, said Bob Lipic, MTI President. Most underground equipment operates without suspension, so if you have rough roads, all that shock is transmitted to every component of the machine, said Lipic. With good road maintenance, you will definitely reduce the maintenance costs of your equipment. MTI manufactures a full line of loaders, trucks, drill jumbos, rail haulage equipment, utility vehicles and in-the-hole (ITH) drilling rigs from two manufacturing plants in Sudbury and one in North Bay, Canada. It is keeping details confidential as yet but is developing a Hybrid Diesel Electric Loader. Another new machine is

tlas Copcos ST1520 LHD - the first of these units in Australia went to Consolidated Minerals Reliance nickel operations in Kalgoorlie. Michael Aspinal, Underground Manager, at the companys Beta Hunt mine said recently: The unit has been working very well for the past five months now and has 1,700 engine hours. The operators are very happy with it and it is now the preferred unit on site. The ST1520 is reported to be faster when tramming, more comfortable to drive, thanks to the good legroom, and the engine does not overheat. This nickel operation was originally developed in the 1970s but was out of action for several years. Recently it has been pumped dry and is now in development for low level production at a rate of 200,000 t/y with a 70% waste to 30% ore ratio. There are proven ore reserves for five years of production. The ST1520 is primarily used for mucking in the main decline, but it also works on some of the incline development headings. Reliances Atlas Copco fleet includes the Rocket Boomer L2D for development drifting, the Boomer 104 for narrow vein production drilling and MT5010 Minetrucks for hauling. An on-site Atlas Copco service team keeps them running and available.

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or more than 50 years, miners everywhere have relied on Getman most for dedicated diesel utility equipment designed specifically for hauling, building and assisting their underground mining operations, safely and efficiently. Weve earned that trust because were as dedicated to mining as you are. Call the underground diesel guys who have devoted more years than anyone else to developing and supporting the best underground mining equipment available from mechanical scalers to charging vehicles, tractors and more. Call Getman at 269-427-5611 (USA), fax us at 269-427-8781, or visit our Web site and sign up to receive the latest underground news and tips at www.getman.com.
THE UNDERGROUND DIESEL GUYS

its Vein Runner II, a narrow vein hydraulic jumbo with full mechanical power train, a 5.5 m boom reach and next generation Intellsense III drilling controls. A member of the Fuel Cell Propulsion Institute, MTI is closely monitoring the development of alternative energy technologies. With diesel engines, you can only go so far in reducing emissions, so theres no doubt about it the development of new technology is inevitable, said Lipic. A fuel cell-powered locomotive has performed well in trials under the auspices of the Institute and trials of a similarly powered LHD are in hand. According to Lipic, fuel cell-powered underground equipment is cost-effective to operate, but the initial capital cost is high. We have to live every day in a profitable world so we can only go as fast as the industry will allow us to go, he said. Theres a lot more work to do and a lot of training needed to safely and effectively use and service fuel cell equipment.

Atlas Copcos Scaletec is equipped with the powerful Atlas Copco SB 300 Scaler, a hydraulic Solid Body (SB) concept breaker, especially designed for scaling. As a result the breaker is lighter in weight, but still tough on the rock

q Shortage of labour for mining work q From unit to system automation q High environmental focus q Minimize incidents q Focus on operational quality Looking forward she sees: q Decreasing numbers of available mining people q Remote mine locations q Demanding underground mining environment and removal of humans from it q Zero environmental impact q Tough revenue demandsuncompromising business results q Need shorter time to production q Continuous cycle q Standardized mining procedures for global mining companies She expects it to be harder to see where extraction (rock harvesting) starts and the processing continues, enabling the full process to be optimized based on the mineral output. Mines will be highly automated based on precision in mineral extraction technology and a process-type environment will have been created. We will see an increasing amount of civil engineering diciplines being applied Tamrocks Axera 6 Cabin is optionally available with heating as well as air conditioning.

Coming soon?
Timo Laitinen, President of Tamrock Underground recently engaged in some gazing into the crystal ball of underground trackless mining and saw: qFurther increased drilling performance and efficiency through new technology qIntegration of excavation process, drilling technology and excavation machinery qImproved equipment utilization with new technology and services His colleague, Tuula Puhakka, Senior Advisor, Mining Business sees the current drivers in underground mining (in an up cycle, with high sensitivity to market change) to be: q Asian and Chinese GDP growth q From BIG to efficient and utilized q From maximizing to optimizing q Large scale underground mines q More selectivity in selective mining methods

in the underground mining environment. There is little or no real work quality measurement used in underground mining today whereas they are standard procedures in construction. This can also be seen in the way equipment is specified. The quality focus will go through the whole process from rock harvesting to processing since the measurements and techniques will need to change. If we have lifted the demand to a higher level due to China and Asian growth all together, the cyclical peaks will continue to impact our lives. Now we just need to be more adaptable and be able to take advantage of the high portions of the cycle and get the mines on line much sooner than before. If any focus was lost earlier when moving from feasibility and development of the mine to production that will be greatly reduced in future mines. The increased focus in quality will have a positive impact in safety and environmental awareness in mines and in the industry altogether. We will see much leaner mining operations and they form the basis for larger scale mine automation. People, she says, are a tough call. She believes we need to take mining to the people, and this editor wholeheartedly agrees. There is much the mining industry needs to do, and can do, to make itself more attractive to young people and the calibre of young people that it needs to attract. Much can be done in education to let young people appreciate the advantages that mining provides through the commodities that we all need in our everyday life. We can also expect to see more multitasking machines, capable, for example, of drilling the face and drilling support holes. As for Tamrocks revolutionary 1,000 Hz drifter, first hinted at during MINExpo last year, the project proceeds as planned with internal testing underway.

36 International Mining December 2005

Truck innovation
On good quality mine roads, equipment such as Toros new T-60 truck can be used very effectively. As noted in IM September 2005 (p.49), it is based on Toros innovative, patented rigid frame chassis and triple axle design. It offers a small turning radius, small overall size, and superb driving characteristics. This editor drove it and found it not much different to driving his own car, an automatic, though a little larger! It certainly was easy and comfortable to drive over a basic circuit. Toro is clearly confident of the units potential having established a line in its Turku plant capable of producing about 50 T60s each year. According to George Tophinke, Toros Business Line Manager, Australia, the challenges for todays underground trucks are: q Mines are getting deeper more productive trucks are required q Making bigger openings is costly truck envelope size must be kept to minimum q Safety requirements are getting more demanding requiring safer equipment and better operator comfort. So, when designing the T60, Toro had to provide the best possible ownership cost, provide a truck that would fit into existing tunnel sizes, had to raise operator safety to a new level, and, finally, had to make a truck that was easy to adapt to existing operations. The T60s ideal loading partner is the new Toro 0011 LHD, designed for massive underground production and large-scale development. Its capacity is 21 t, equipped with 8-10.7 m3 buckets. A Detroit Diesel S-60 engine developing 354 kW powers this machine. Also with an eye on the envelope, Dux has the ET24/DT25 dump truck, which, it says, is a revolutionary high payload capacity truck incorporated into a small envelope. It is 2.2 m wide and fitted with a regular dump box has a load capacity of 25 t. Equipped with the ejector box the capacity is 24 t. Dux also has a new generation of cabs for its underground haulers. These are isolated from the chassis and noise levels range from 75 to 82 dB(A), depending on the truck. Vibration, noise and heat transmitted from the chassis are reduced to a minimum thanks to the pin/rubber mounting. The cab is ergonomically improved with good leg room as well as offering easy to read gauges and electronic displays. Air conditioning and heating are standard and the cab is pressurized and filtered. All panels are insulated and windows are double-glazed thus reducing noise even further.
38 International Mining December 2005

People, she says, are a tough call. We need to take mining to the people.
Dux manufactures a complete line of utility vehicles including the new SLP 5000N scissor lift truck which is specially designed to work in narrow drifts and confined areas thanks to its 1.83-m chassis and 45 articulation angle. The SLP 5000N also has a central oscillation (mid-ship) of 10 to either side that permits four-wheel ground contact on uneven terrain. It comes with pipe handlers to facilitate the installation of pipes and ductwork. It offers a 1.83 m wide x 3.66 m long platform with 4.27 m extended deck height and 6.15 m man reach without stabilizers. While it is normally best to use a purpose-built underground truck, the wide range of articulated dump trucks (ADTs) available could be used in the right applications. Caterpillar has just introduced a second, smaller ejector ADT featuring the Cat C11 engine with ACERT technology. The new unit is the second in the Caterpillar line to use a self-cleaning ejector mechanism that allows material to be spread and dumped on the go, without raising the body. Such units can of course be useful in spreading backfill underground. The ejector body also offers clean load ejection to eliminate productionrobbing carry-back.

Drilling in comfort
Sandvik Tamrocks Axera 6, compact twinboom jumbo was launched in 2004. As with its predecessor Axera D06, it has gained popularity in underground mine development. With a total population of over 150 machines in use, of which one third is the latest Axera 6 model, it
The operator in the cabin of the Paus RL-852TSL controls the hammers breaking power or impact frequency.

represents a considerable market share in the global market. Now the Axera 6 is available with a ROPS and FOPS certified safety cab; insulated from noise and vibration and pressurized for best operator comfort. To provide best operator ergonomics, the proven hydraulic THC controls offer easy and fast boom and drilling operation. The compact envelope size of the Axera 6 has not been compromised. With a total height of 3 m the Axera 6 Cabin is good for cross sections from 3.5 m by 3.5 m and up. It is powered by the Deutz BF4M2012 (74kW) diesel engine for fast and safe tramming. The large tyre size together with high ground clearance allows smooth operation even if road conditions are not as they should be. The choice is between TB26 or TB40 booms, TB26 is simple to operate, with great flexibility for different applications. TB40 is known for robust design, accuracy and full readiness for sensors and instrumentation. The new generation HLX 5 rock drills are standard on Axera 6. The TF cylinder rope feed with 25 kN maximum feed force provides stable drilling even with high power levels. New TFX telescopic feeds are an option. Good serviceability is always a key objective. All daily service points are easily accessible. Covers are designed to protect against falling rocks and water, but not prevent easy servicing of the machine. During 2005 Sandvik Tamrock completed the Solo 5 series, a full range of longhole drill machines for underground excavation. The latest versions meet needs for modular design and common technology platforms. The Solo 5 carrier is the same as for the Robolt 5 and Axera 5 products. The Solo 5 range replaces three current models: Solo 126LC10, Mercury LC22 and the Solo RTS. Solo 5 longhole drills can fit in drifts as small as 3m by 3m and have particular use in small-scale sub-level stoping, vein mining and underground benching. The main components in the drilling module, i.e. boom, feed and cassette, have been redesigned using experience and knowhow from the well proven 07-sizeclass Solos. Additionally, the new SOLO 5 series will introduce the HLX5 drifter.

Boarts big move


The change in ownership of Boart Longyear (BL) was initially discussed in IM September (p.51). The Johannesburg corporate office will be closed by year-end and relocated to offices at BLs Salt Lake City plant in the USA. BL Corporate was located in Johannesburg to be close to its former parent, Anglo American. However, more than half of BLs business now emanates

Trackless equipment
from the Americas and the move will gain closer access to the main business hub and Advents (the new owner) key office in Boston, USA. A programme to maximize operating efficiency is already underway. This aims to reduce existing cost structures by identifying the location at which a product is made most competitively, then consolidating BLs manufacturing plants so the company can single source products from global Centres of Excellence. The success of these centres is in the hands of the team of global product managers, working closely with regional management to ensure a common approach to global strategy and local customer needs. To simplify the structure and maximize efficiencies, the business has been divided into Drilling Services, which is already well established, and Products & Equipment, which encompasses the manufacturing operations. BL is currently finalizing the structure of Products & Equipment. CEO Paul Brunner says the way forward will focus on a three-track growth strategy designed to mitigate the effects of relying on the cyclical boom or bust nature of mining and to consolidate BLs leadership in its core businesses. The first track is in strategic acquisitions. Once Boart Longyear has bedded down in the Advent fold and concluded the process of restructuring and consolidating existing operations, both organic and acquisition growth will be key strategic drivers. A second target is to increase mining market penetration in under-represented territories. We enjoy a broad geographic footprint in the global mining market and will seek to further penetrate mining markets in Brazil, India, China and Russia. The third goal is diversification into non-mining drilling services. The StopeMaster is a classic BL product, a fully electric-hydraulic tophammer longhole drill rig, offering increased productivity, at low capital investment, with decreased maintenance costs. Last month we noted interesting StopeMaster sales to the CIS, but what is this rig? Well, compact enough to get into the tightest drilling sites underground, it is designed for efficient dismantling, and reassembly for rapid transport into captive areas. It is ideally suited for drop raises, cable bolting, fan drilling and parallel drilling. Deep hole accuracy is enhanced through superior guidance of the durable feed system and Hercules centralizer. It is designed to produce consistent, high performance regardless of varying operator skill levels or conditions. Importantly, it allows longer intervals between scheduled preventative maintenance and this has been proven through millions of metres of drilling experience.

Load and haul


Agreeing with Sandvik Mining and Construction colleagues quoted earlier on the future and looking generally at the Toro LHD and truck products, Product Line Manager Riku Keslinen foresees better control of the mining process meaning transparency of the underground operations with onboard data collection, more communication and more data processing. Also, open systems will be required and provided. Increased process/equipment utilization requires automation, monitoring, predictability, reliability and diagnostics. And the requirements for even safer operation embrace both operator safety and machinery safety. Ergonomics,

serviceability (working from heights, etc.) and emissions of noise, gases and fluids are the areas to be addressed. These things will be achieved, he says, through basic technical solutions that encompass hydraulics, mechanics, powerline, electrics, etc. There will be new designs and new technologies, particularly in electronics, IT and communication. Keslinen too sees fuel cells playing an important role in the future. The main task to get that going is to find ways of safely handling hydrogen underground. He also foresees, in the near future, Toros without cabs operating on the Automine system thus saving the tramming of dead weight.

December 2005 International Mining 39

16 km/h, but automated they can run at 30 km/h, making them much more productive. Indeed seven units would have been required if drivers were used.

Roof control
Based on experience from long-term testing of Atlas Copcos first Scaletec rig in Swedens Malmberget mine, a number of new features have been incorporated in the second unit. Operator comfort has been further improved by reducing

The Paus and Schopf LHD product lines complement each other well because Paus is strong in smaller LHDs with payloads of up to 6 t, while Schopf offers a payload range of 6.5-18 t. Above a Paus PFL8 in an apatite mine, on the right an Schopf SFL130 in magnesite.

Automation
One of the key drivers for Toros Automine system for LHDs and trucks is improved safety and working conditions, made possible by allowing the operators to work from a surface control room. Automine offers: q Semi-automated cycles with automated tramming and dumping, tele-operated bucket loading and on-the-fly mode change q One operator for several LHDs q Condition and production monitoring q Production area isolation q Traffic control q Interfaces to external systems q Scalability to different applications Potential savings in labour costs are 60-75 % (haulage automation with large fleet). For example take this truck haulage case (see box below): The current Automine LHD references are: q Finland - Inmet Mining, Pyhsalmi mine one T0011 LHD q Chile Codelco, El Teniente mine three T0010 LHDs (Pipa Norte section) and three more T0010 LHDs in Diablo Regimiento section On November 3, De Beers officially opened the world's first automated horizontal truck system with Automine and the Toro T50D trucks at Finsch mine in South Africa. This was the culmination of four years of joint effort by De Beers and Toro (Sandvik Mining and Construction). In opening the new tramming loop, De Beers Consolidated Mines Managing Director Jonathan
40 International Mining December 2005

Oppenheimer alluded to De Beers current heavy reliance on open-pit mines and said: What we are proving here is that we can thrive underground. He noted todays open pit can become the underground mine of tomorrow and efficient ways of mining underground, using block-cave methods and automation, would provide an exciting future for De Beers. He explained that Finsch began as an open pit, and the same would happen to other De Beers assets, including Venetia mine, which would need to go underground in the next ten years. The system uses six 50 t T50Ds to haul kimberlite ore from a tipping point to an underground crusher in the new Block Four, the deepest mining section at Finsch. Block Four extends the life of Finsch by a further nine years. With drivers, South African mining legislation would restrict tramming speed to

vibrations. A new operators chair with built in pneumatic shock absorber both eliminates vibrations and offers a number of adjustment options to suit each individual operator. The front end of the machine was previously only supported by conventional hydraulic jacks, but now also uses the shovel blade to ensure a stable set-up. Safety and visibility have been improved by moving the boom attachment further forward. The cabin lift and tilt system combined with a new design with steel bar protection across the windscreen makes it easy for the operator when scaling in higher areas. Hydraulic hoses have been relocated to better protect them from rock falls. Excellent manoeuvrability is achieved by the positioning systems proportional functions. The configuration of the control sticks and buttons has been adjusted according to operator experience

Lifetime of project Fleet Operation Number of manual operators Number of system operators (auto) Labour cost per operator Total lifetime saving

10 years 6 trucks five days/week and three shifts/day 21 (six/shift x 3 shifts + three relief) 5 - 9 (1 to 2 operators/shift x 3 shifts + 3 relief) 30,000/y 3.6 4.8 million

Trackless equipment
from the Malmberget tests. That original machine already featured a newly developed boom system with a built-in hammer angle compensation for reduced boom positioning time. Scaling is traditionally one of the most hazardous jobs underground. Using mechanized rigs can drastically cut the accident rate. Operators enjoy a safe working environment with good working area visibility. Productivity as well as quality of scaling will increase. The control system for the carrier has been integrated into the RCS (Rig Control System). The Scaletec design is based on years of rock excavation experience. For example, the carriers for the twin-boom Boomer jumbos and the Scaletec MC rigs are almost identical, which reduces the need for storage of unique parts, thereby simplifying maintenance routines when working with a full package of Atlas Copco equipment. Scaletec is a new member, but already an integrated part of the Atlas Copco product family. Scaletec offers a number of functional features and options, for example strategically located water nozzles for dust suppression and the choice between electrical or dieselhydraulic tramming and scaling. The complete unit comprises an SB 300 Scaler hydraulic breaker, a Scaler boom, an M-series carrier, a 75-kW electric motor, RCS, hydraulically driven compressor and water pump. Its transportation height is 3 m, length 13.5 m and width 2.2 m. Its total weight is 19 t. Cemento Melons underground Navio mine lies 15 km northeast of La Calera in Chiles 5th Region. It mines some 3,380 t/d of limestone. Navio has long been a leader in the use of trackless, mechanized equipment in Chile. Because of the development of drifts and production benches, mechanized scaling is a priority. Limestone being a stratified sedimentary rock, falls are one of the main potential safety hazards in the mine. Earlier this year Navio put into operation its second Paus RL-852TSL scaler unit equipped with a hydraulic hammer. This is an innovative concept developed by Paus, optimizing the scaling operation since - unlike other designs that position the hydraulic hammer pointing at the rock (only one point of percussion) causing fragility and overbreak - the RL-852TSL attacks the rock using a telescopic arm working together with the hydraulic hammer, scratching the walls and roof to knock off the loose rocks. Paus and Schopf have combined their sales and service activities for

Meycos Logica 10 mounted on a Cobra is not commercially available but soon will be. This is the cutting edge of spraying robot technology for the application of shotcrete.

December 2005 International Mining 41

Trackless equipment
customers in mining. The two LHD ranges have been merged. In addition the international partners will market the Paus truck and utility vehicle range jointly. As a result of the merger customers will now have the largest loader range on the market with a total of nine models. We have already started marketing in the traditional mining areas of South America, Africa and Eastern Europe and are expecting the first successes shortly, report Dr Hermann Brggemann, managing partner of Schopf and Franz-Josef and Wolfgang Paus, managing partners of Hermann Paus. For customers of both companies there will be significant advantages from an integrated product range and service all from one place. With a well diversified dealer network we are now also in a position to pit ourselves against the major competitors. ready to start, within minutes. As soon as spraying is finished, the equipment has to be removed so that the next part of work cycle can begin immediately. The three main components are Meycos Suprema concrete spraying machine, the Minima spraying manipulator, which can be packed away very neatly and can be extended without needing additional room, and a 4 x 4 articulated Paus carrier. The whole unit is very robust. The Cobra now includes Meycos TDC (Total Dosing Control) system. For 2006 there are some significant new features: cable reel and electric cabinet are hinged to allow instant and full access to the diesel motor; heated electric cabinet and remote control to prevent condensation; and central lubrication will reduce wear and tear on moving parts and cut maintenance time. At Ekati diamond mine, the underground maintenance superintendent Jack Wanner turned to Finning to build a shotcrete machine based on Cats 420D backhoe. We looked at some other machines, but they were a bit too unstable, which is why we elected to go with the 420D backhoe and put the shotcrete sprayer on the back, he explains. The 420D is a little wider so it is more stable. Finnings equipment preparation team removed the backhoe attachment, the rear swing frame, the valve group and hand controls. The rear backhoe mount was sheared off. A mounting plate to accommodate the shotcrete sprayer was designed and welded to the rear of the machine. The team designed a table to mount the attachments needed for the sprayer and bolted those to the mounting plate. Separate welds on the mounting plate allowed the shotcrete arm, transformer and cable reels to be bolted on. The hydraulic valve from the shotcrete boom was moved to the table, fastened to the mount and re-hosed. The boom rest was attached to the mount allowing for components to be easily removed for repair. In addition to these changes, Finning installed two 500-W work lights to the back of the cab. For health and safety, a fire suppression system and a catalytic muffler to scrub the vehicles exhaust were added. Other additions included a 600 A main battery fuse, a central heater system and a stand to mount the shotcrete remote controls. Shotcrete is mixed at the surface, poured into 1,000 kg bags and transported down into the mine. Underground, it is dumped into the portable mixer carried by the modified backhoe. The sprayer connects to the mixer with a 50-mm thick hose, using air pressure to blast the shotcrete onto walls. The machine can be operated from either inside the cab, or outside by remote control. One benefit of the modified 420D backhoe is convenience. Parts are easily available at the mine site. Ekati has a number of 400 series backhoes on surface so theres no need to stock different fuel filters. Thats a serious issue for the mine because it is very expensive to ship parts. The machine has become indispensable. Wanner ordered another modified 420D. It has worked out well. Its spraying shotcrete every day. It is now part of the regular mining cycle, he says. We wanted to see how it worked but it has really done the job, so much so that we need another machine. The ingenuity of Finning in designing the shotcrete sprayer and the ability to maintain the equipment is impressive. IM
Marcotte developed the M40 Fanhandler, a unit to safely install and remove large ventilation fans, following a workplace accident, which had resulted in a serious injury, at Incos Coleman-McCreedy East mine in Canada. This removed worker exposure from what can be a complicated and sometimes hazardous operation. It combines a boom truck frame and an adapted boom function with a fine controlled manipulator arm and can install or remove 0.7 to 1.37 m diameter fans in a much reduced time span. It can lift fans weighing up to 1,800 kg with a 2.4-m reach. A 320 manipulator arm rotation allows precision reach into confined or tight working areas and the fine fan positioning adjustments allows workers to perform the most difficult fan changes.

Shotcrete excellence
Meyco says it benefits from being a part of the UGC International organization within Degussa Construction Chemicals. Using know-how and synergies, shotcretespraying systems are developed and harmonized for greatest efficiency leading to a better product. These include wetand dry-spraying machines, manipulators (large and small), complete mobile units and special constructions for specific projects. Meycos own research and development is dedicated to shotcrete and the improvement of quality in both application and end result. The Cobra S is the latest generation Meyco spraying mobile for mining. All the necessary components on one chassis and the ability to get to all parts of a mine are very important. In todays tight time schedules, it is imperative that spraying set-up is achieved, and the machine is

42 International Mining December 2005

MMT
New technology in AC compressors
Atlas Copco Portable Air has introduced two important innovations to its large compressor line used in mining Fuel Xpert and Oiltronix. Fuel Xpert intelligently regulates engine speed and air intake to optimise fuel consumption. This ensures that Atlas Copco compressors, already acknowledged as offering the best fuel economy at full load, offer more than 10% improved economy compared with competitive compressors at partial load. An additional benefit is in cold weather conditions as the compressor can start with a closed inlet, opening as required air is delivered. As an example, a drilling operation that might have the compressor running for about 2,000 hours in a year could, over that period, save 15,00025,000 litres with Fuel Xpert. Oiltronix is a new condensation control system offering extended compressor life. It is a new electronic system that controls the oil injection temperature and condensate to ensure extended lifetime of compressor components, air ends, oil and oil-separators offering significant cost savings; plus increased safety and prolonged lifetime of components. Oiltronix sensors measure the ambient temperature and relative humidity. Together with the compressor controller - monitoring different pressures such as working and regulating; pressure, oil and outlet temperatures; and the engine speed - the system automatically determines the optimal oil injection temperature to operate out of the condensate zone. Compression at high pressure and too much cooling, for example, creates condensation in the oil particularly on partial load where cooling is many times higher than is necessary to cool the compression. In a conventional sys-

Breathe easy with Huss


Huss Umwelttechnik has been developing, manufacturing and marketing diesel particulate filters since 1985. Its diesel burner technology, self-sufficient from external power sources, is very efficient in soot burning. Also, in order to regenerate faster and to provide solutions up to 450 kW, the MK-system was developed. Continuous Innovation means being state of the art is an elementary aspect of the Huss strategy. In the fitting a diesel particulate filter system, very often the silencer is replaced. Quite often the silencer is integrated in the vehicle in an upright position. This was a challenge for the MK-system. To overcome this, the R&D department came up with the MK-system vertical. This uses proven technology and special elements of the Huss filter like silicon carbide (SiC), stainless steel cages and modular design. In particular, the regeneration time is the same only eight minutes for the smallest filter. A new burner element ensures that the burner is ignited and is working properly in an upright position. The MK-system with diesel burner being totally self-sufficient from

tem, oil temperature is therefore maintained high in order to avoid condensation. Whilst this works well on full load it creates high temperatures even if not required at low humidity. Operating with the Oiltronix provides a reduced oil temperature that can in certain regions triple the theoretical bearing life. On smaller compressors, the HardHat enclosure is produced in recyclable LMDPE (linear medium density polyethylene). It is the same material approved for use with chemical containers, boats, toys and other applications. It is fully UV stabilised, contains long term antioxidants and is resistant to low and high temperatures. The HardHat has been designed to eliminate corrosion problems generally

Atlas Copco has made extensive improvements in economy, environmental management and resilience to its compressor lines

associated with metal housings. It is also high impact and crack resistant. HardHat versions are available as an option to the standard metal enclosure. It is significantly lighter than the metal enclosure and offers a more attractive and enhanced appearance. Atlas Copco has introduced a further six models featuring the HardHat, making it available for the complete Series 7 compressor range from January 2006. So, HardHat is now available for nine models rated from 32 89 litres/s and 7 12 bar. www.atlascopco.com

DBT wins record orders from China

Between the end of September and the beginning of November, DBT closed three major contracts with Chinese mining companies. The orders are for a total of nearly 1,000 shields, several conveyor systems, and a complete fully automated plow system. Shenhua Chinas major producer, with annual production more than twice that of its closest domestic rival and fourth largest in the world placed the largest-ever order from a single customer in DBT history. By the time the contract has been fulfilled, DBT will have delivered a total of 2,700 shields to Shenhua. DBT will deliver a complete fully automated plow system for use in low-seam coal to Tiefa Coal Industry in Liaoning Province, in the northeast of China, strengthening DBTs position in such operations. DBTs fully automated plow technology was reported in detail in IM November. DBT has succeeded in more than doubling its Chinese customers from 5 to 11 in less than 18 months and the latest new customer is the up-and-coming Yushen Coal. A contract for a complete thick-seam longwall was signed on October 26 after a negotiation lasting only five weeks, unusually short by Chinese standards. The project began in 2002 with initial technical presentations in the Shaanxi and later at project planning and design institutes, culminating in the major contract after three years of acquisition work. Yushen is of strategic importance to DBT, as the company which has not previously invested in state-of-the-art Western mining technology has aggressive expansion plans and will invest heavily in high-tech equipment to achieve a production target of 40 Mt by 2009. DBT will supply Yushen roof supports as well as a face and gate conveyor systems. The 150 shields have an extended height of 5.5 m and are equipped with PMC-R automated control. The PF 6/1142 face conveyor is some 250 m long, driven by 3 x 700 kW motors via CST gearboxes. The 28 m PF 6/1542 gate conveyor includes an impact roll crusher and a selfadvancing belt return end. The longwall is designed for an output of 5 6 Mt/y. Following delivering in the middle of 2006 and compatibility tests with third-party equipment on the surface, the system will go into production towards the end of 2006. These contracts represent a further consolidation of DBTs domination of the shield market and a substantial strengthening of its share of the conveyor market: In the last 12 months, DBT claims to have achieved a market share of just under 70% for shields and of nearly 50% for conveyors. www.dbt.de
Signing ceremony for Yushen Coals Yushuwan project.

December 2005 International Mining 43

external power supply is one of the big advantages of the system. Now there is the added advantage of its use in a vertical position, too offering more flexibility in narrow spaces This brings more flexibility in implementing the system on specific vehicles. Continuous product improvement is a necessity for Huss Umwelttechnik in order to remain among the leaders. The new MKseries in upright design gives opportunities for even the smallest application explains Urs Rutschmann, CEO of Clean Life AG, Huss Umwelttechniks partner and dealer in Switzerland. Customers can now choose between a variety of different systems, passive and active, depending on their specific applications. Huss Umwelttechnik offers a complete range of diesel particulate filter systems, all customer solutions from one source. The filters are easy to install. Huss can help with this and offers special retrofit kits. Machines can be equipped with a filter at the site. The filters cover engine outputs ranging from 30 up to 240 kW, and special solutions for bigger engines are available on demand. Huss reports that the filters capture 99.9% of diesel particulates. www.huss-umwelttechnik.com

growing economies and a large consumer of mineral resources. This puts great pressure on mineral processing companies to upgrade smelter capacities, increase productivity and efficiency and reduce negative environmental impacts. said Paul Puusaari, CYMG Project Director For the CYMG project MIPAC provided: specification of measurement and control equipment; basic installation design; interface with Chinese engineering group, ENFI; supervision and inspection of field and DCS installation; commissioning of fieldbus system and field instrumentation; logic and HMI design, configuration, testing and commissioning; hot commissioning, loop tuning and plant stabilisation of smelter controls; provision of Brisbane-based and on-site training for CYMG personnel; establishment of remote monitoring facilities to provide control system support for CYMG personnel. www.mipac.com.au.

Instantel rewards innovation


Instantels new Innovation Awards will honour outstanding achievements the world over and will be presented to organizations demonstrating innovative vibration monitoring on projects with unprecedented success. Every year, were constantly amazed at the scope and variety of projects that use our instrumentation, commented Robert Lee, Vice President of Instrumentation. We thought it very appropriate to properly acknowledge and reward Instantel users for their expertise and monitoring capabilities. Winners of the inaugural Innovation Award will be announced in major trade publications worldwide, as well as showcased on the Instantel website. To nominate a project, or to receive more information on the Awards Program, visit www.instantel.com.

Clean Isasmelt for Chinese lead


MIPAC, leading provider of process control engineering solutions, under contract to Xstrata Technology, has successfully implemented and commissioned an Emerson Delta V and Fieldbus measurement and control system at Chinas newest lead smelter, the CYMG ISASMELT. As a result, CYMG should realise lower production costs, a safer operating environment and minimise negative environmental effects from the lead smelter. The Isasmelt at Qujing is part of a major Greenfield plant designed to process 160 000 t/y of lead concentrate. MIPACs expertise in major control system implementations, their international project experience and their recent success in China made them an obvious choice for this project with CYMG. said Joe Pease, General Manager, Xstrata Technology CYMG and Xstrata Technology selected MIPAC to specify the measurement and control equipment and installation requirements as well as design, configure and commission the Emerson DeltaV control system for the smelter and associated feed system. China is one of the world's fastest

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Multotecs spiralling success

ultotec Process Equipment reports a significant increase in the number of orders for its spiral concentrators. These include banks of Multotec SX7 double stage spiral concentrators and SX4 single stage coal spirals for installation on several coal plants in the USA. These spirals are treating a total tonnage of 900 t/h. Successes have also been achieved in Brazil with banks of washwater spirals very recently commissioned in a 240 t/h iron ore plant. These spirals were specially developed for this particular application to ensure optimum recoveries. Also in Brazil, spirals have been ordered for a chrome plant treating 90 t/h. This particular beneficiation plant in Brazil is a copy of an existing plant that uses Multotec spirals, and Multotec says that the recoveries and reliability of these spirals were the primary reason for this order being placed. Sales for spirals in coal applications in Australia have grown with a total of 88 triple start spirals split between two large coal plants. A total tonnage of 800 t/h will be treated between these two plants. Also, two orders were received for coal plants in Turkey, for Multotec MX7 spirals. MX7 spirals are currently the benchmark on South African coal plants, Multotec says, because the units are simple to operate with two stages in one and very adept at dealing with difficult coals. Multotec Process Equipments Cyclones Division has recently been granted a TUV/CE certification for its full range of cyclone products. www.multotec.com Multotech Mineral Spiral
in Operation

shown that by choosing Ingersoll-Rand we got it right first time. (info@drilcorp.com) Hirecorp UK has mounted IngersollRand compressors on vulcanised rubber tracks to provide the manoeuvrability and low ground bearing pressure needed to deliver the compressors to inaccessible sites. The low centre of gravity of the tracked compressors allows them travel easily up gradients and across uneven ground. The use of radio controls optimises safety by allowing the operator to unload the compressor from the back of a truck and operate its movements onto site from a remote position. Hirecorp minimised development and product costs by using power from the compressor engine, eliminating the purchase and service costs of an extra engine in the package. In addition, non-toxic, biodegradable oil is used in the hydraulic system to mitigate against any possibility of ground contamination. The prototype unit was based on the 14/115 model from Ingersoll-Rand, part of the new 7/170 family of portable compressors. The 14/115 supplies 11.3 m3/min of compressed air at an output pressure of 14 bar and is a popular power source for applications in drilling. Hirecorp also has a trackedmounted model based on the larger Ingersoll-Rand 21/215 compressor that delivers 20.9 m3/min of air at an operating pressure of 20.7 bar.

to isolate the wiring and terminations from the sensing elements and internal electronics. Meeting the requirements for use in hazardous areas (FM and CSA - Class I, Division 1 and 2, Groups A,B,C,D), the EasyTrak XPs rugged, powder coated aluminum enclosure is rated for IP67 or NEMA 4X and DIP ratings. This ensures operation even in the harshest of conditions. www.asiinstruments.com

Ampcontrols China success


Australian engineering company, Ampcontrol, has received the NSW China Exporter Award. Exporting for 25 years and with export growth sixfold in the past financial year, Ampcontrol has continued to expand its export marketing strategy on all fronts. Ampcontrol is today recognised as a world leading manufacturer and supplier of electrical and electronic products to the international coal mining industry and an innovator in the area of gas detection systems. Since 2000, a significant number of substations have been supplied to Chinese mine operators; these include conveyor substations and development substations to Shanxi Asian American Daning Energy Co, the first joint venture coal mining company in China. The group is currently commissioning the first all Australian manufactured electrical longwall system for China at the Daning mine. This consists of a 6.5MVA 10kV/3.3V substation, 3.3kV DCB, face control and monitoring unit, lighting, voice communication and gas detection equipment. Within this system, Ampcontrol has supplied the worlds largest underground flameproof substation. www.ampcontrols.com

Lasers challenge bulk solids


ASI Instruments new transmitter measures level, distance, and position in challenging bulk solids applications. This compact, all-digital design measures any solid surface at any angle with no beam divergence. The EasyTrak XP laser transmitte measures dry bulk solids, regardless of the presence of surrounding vapour or moderate dust. The device is housed in an explosion-proof assembly with screwon cover for quick and easy access. The dual-compartment design allows users

Mining XcelWobblers ...


For copper heap leach and more, Senningers Mining Xcel-Wobblers use a unique off-centre rotary-action to provide extremely uniform coverage at low pressures with very low evaporative losses. The new balanced design alows smooth, stable performance and, for longer life, there is only one moving part. Built for durability using high-impact engineering-grade thermoplastics, no metal parts, XcelWobbler CMS models are designed for high sulphuric acid (0.5 to 3.0 pH) copper mining solutions. www.senninger.com
December 2005 International Mining 45

Crawler mounted compressors


A new range of track-mounted compressors has been designed using Ingersoll-Rands compressors to solve the problem of delivering and moving compressors about sites with very restricted access and sites with very soft or muddy ground and uneven terrain. The will have application on remote exploration sites and the like. Russ Cooper, Manager of the Hirecorp UK, a division of drilling con-

tractor, Drilcorp, said: For many years, our Managing Director, Dave Gowans, had been nurturing the idea of a selfpropelled, remote controlled air compressor on tracks to solve access problems we have encountered on sites around the country. This has resulted in the development of the new tracked units using the Ingersoll-Rand range of compressors. All of the Ingersoll-Rand people from sales, engineering and service departments have provided us with all of the information and assistance that we needed and they have

Coal News
Shoemakers last despite new records
Consol Energy reported record earnings of $377 million, compared with a loss of $11.6 million for the same period a year earlier. This was solid performance from our ongoing operations in a quarter that, historically, has been weak for us, said J. Brett Harvey, President and CEO. Expanded coal and gas production coupled with higher prices for both coal and gas greatly improved third quarter performance compared with last year. Sales of company-produced coal increased 1.63 Mt, or 11.9%, in the period-to-period comparison. Average realized price for that coal increased $6.58/t, up 20.1% in the same compar-

Key
General Office Mines/Plants Sales Offices
Provo

CONSUL R&D Philadelphia Baltimore Terminal Norfolk Atlanta Gas Operations Port/Dock Cities OHIO
Mahoning Valley Pittsburgh Library Pittsburgh Mine 84

UTAH
Price Emery

WEST VIRGINIA KENTUCKY Miller Creek


Jones Fork Mill Creek Beckley Amonate
Miles Branch Bluefield

Wheeling Shoemaker

Washington Pennsylvania Enlow Fork Alicia T.F. Bailey

McElroy Waynesburg Blacksville 2 Loveridge

VP8 Buchanan

Robinson Run WEST VIRGINIA

Morgantown Fairmont

Md

VIRGINIA TENNESSEE
N. CAROLINA

Clarksburg

ison, reflecting improved contract and spot pricing. Production of coal increased 1.45 Mt, or 10.5%, in the quarter-to-quarter comparison. Total coal production for the first nine

months of the year was 46.7 Mt. McElroy and Bailey mines showed strong improvement in production period-to-period. Other mines, including Mine 84, Loveridge, Emery and

Isibonelo charges in
In July 2005, Anglo Coal's Isibonelo mine supplied its first coal to Sasol. The $65 million mine commenced production on time and on budget and is expected to supply 5 Mt/y of thermal coal to Sasol Synfuels when it reaches full production during 2006. Anglo American and Sasol initiated a study in 2000 to consider the development of these reserves in Mpumalanga province, South Africa, 11 km north of Sasol Minings now-closed Syferfontein open pit and south of what was Anglo Coals Kriel South mine, the reserves of which are now the property of Sasol Mining as a result of a deal. An agreement was reached in July 2003 for Anglo Coal to establish a new opencast operation on the northern portion of the coalfield and Sasol was granted access to the southern portion of the Kriel South coalfield, through the expansion of its existing underground operations at Syferfontein Colliery. Anglo Coal will this year supply 3.7 Mt to the Sasol Synfuels plant from Isibonelo, which has openpit reserves of 100 Mt. Anglo Coal bought equipment from Syferfontein, including draglines. Sasol Minings investment totalled R320 million and Anglo Coals some R770 million. One of the big tasks was for Bateman Materials Handling, as main contractor, to upgrade the Syferfontein conveyor system that feeds the Synfuels plant to 14 Mt/y at a cost of R170 million. The upgraded system now accommodates 5 Mt/y from Isobenelo and some 9 Mt/y from Sasol Minings underground Syferfontein mine. The conveyor speed has been increased to 6.5 m/s and loading capacity to 2,850 t/h. When it was first built, the Syferfontein conveyor was claimed to be the worlds longest system, extending 23 km from the mine to the Sasol Synfuels factory. Isibonelos coal comes in on an 11-km conveyor to a transfer point close to the start of the Syferfontein system, where the two flows join. To facilitate two mines feeding to a single conveyor, there is a 10,000-t surface bunker at Syferfontein and an 8,000-t bunker at Isibonelo.
Dunlop Belting Products was awarded the contract to supply the steel cord reinforced conveyor belting for the conveyor system to convey coal from Isibonelo to Syferfontein. Splicing of the 47 lengths of belting supplied for the project began in December 2004. 46 International Mining December 2005

Miller Creek, also improved production. VP 8, Shoemaker, and Buchanan mines had production declines period-toperiod. Total costs for company-produced coal increased $0.88/t, or 2.6%, in the period-to-period comparison. This was due primarily to higher supply costs. Demand for high-Btu bituminous coal in the USA is likely to remain strong for the next several years, Consol reports, based on expressions of interest for multi-year contracts at todays market prices by electric power generators. We expect to execute a steady, disciplined growth strategy for coal in the next three years, matching our increases in production capacity with market demand, Harvey said. He said most of the capacity increases will come from efficiency projects that also lower the unit cost of coal production as well as from smaller additions to capacity at various operations in Central Appalachia. To further control costs, a number of continuous miner development sections at Shoemaker mine in West Virginia will be eliminated. Harvey said that development work would be completed on the 1B and 2B longwall panels at Shoemaker and then further development at that mine would be suspended. Continuous mining unit costs are much higher than longwall mining costs. Shoemaker Mine is the only mine we have operating in the Pittsburgh Seam that does not have a full belt haulage system moving coal from the face to the preparation plant, he explained. We would like to convert this mine to all belt haulage, but the market price for Shoemaker coal in the next few years will not justify that investment. Harvey said that the plan would allow the mine to run through the spring of 2007, thereby meeting its current contractual obligations. After the 1B and 2B longwall panels have been mined, Shoemaker would be shut down. IM

Tails
Africans against EU chemicals bill
Since the leader in IMs October issue discussing the European Unions draft REACH (Registration, Evaluation and Authorisation of Chemicals) legislation, countries in Africa have stepped up pressure on the EU to make changes because they say REACH would hamper mining industries and slow down development. South African President Thabo Mbeki has written expressing concern about REACH to EC President Jose Manuel Barroso and British Prime Minster Tony Blair, whose country currently holds the EU presidency, Reuters reports. Our concern has been the potential impact of REACH on the developing countries, said Jerry Matjila, South African ambassador to the EU. He said the bill would generate costs that would push African, Caribbean and Pacific (ACP) states further into poverty. African nations are heavily dependant on mining. Matjila said 20 ACP states depend on mining exports for more than 10% of their total revenues, and in 16 of those countries, mining makes up more than 30% of exports. its subsidiary Emaxon IM ........Instan Finance International, t Message which markets 88% of the Ne w web site on product of the DRC's Am gold mining ericas National Mining Associa largest diamond mine, wo tion (NMA) an rlds premier go d the ld producers ha MIBA. Among its invest- sit ve launched a ne e, www.respon w web siblegold.org, to ments, DGI recently pro- go provide informati ld mining practic on on es around the wo vided nearly $15 million inc rld. The dedicate ludes information d site on the role of go to finance the purchase wh ld in modern so ere and how go ciety; ld is produced; law of a new kimberlite un s, regulations an tary initiatives go d volverning gold mini washing plant and a efits ng; the econom of gold mining; ic benprofiles of award dragline that will boost rec winning mine lan lamation projects d ; and corporate MIBAs diamond pro- susta social responsibi inable developm lity and ent efforts. duction to 8.5 Mct/y. Our intent is to provide objectiv Emaxon is work- mati e, straightforward on to gold cons inforumers and othe ing closely with gold rs interested in m mining practices odern , NMAs senior the Ministry of mun vice president for ications, Carol Ra comulston, explained. Mines and the chara Recently, inaccur cterizations of go ate ld mining opera Centre d Evaluation in a tions have been campaign again used st our customers et dExpertise de jewelr in the electronics y businesses. It is and important to ge Matieres Precieuses open t the facts out in . the au Congo (CEEC) to The anti-gold ca mpaign intensif ensure that the pol- coinc ied in early Octo ide with the int ber to roduction in th ishing plant is in Federa e USA of H.R. l Mineral Develop 3968, ment and Land compliance with Act of Protection Equit 2005, a so-calle y d mining law ref domestic and duced orm initiative int by Rep. Nick J. roRahall and seven international regu- limina co-sponsors. A pr ry analysis of the emeasure indicates lations, including the pr it contains many ovisions seen in pr of evious Rahall mini the Kimberley ing a ng law bills, includ permanent paten t moratorium; an Process. The return 8% net smelter royalty; further lim its on lands open plant, currently lishing to mining; estab an Abandoned Mine Land Fund operating at a collecte (AML) with mon d from royalties; ey a land suitability fraction of its full propos test before a mine al is considered ; and additional capacity, will mine pe discretion to de rmits. ny immediately The NMA says it believes cons advance to full reform tructive and ba should preserve lanced and enhance th p r o d u c t i o n produce e nations ability minerals with ce to rtainty and flexib when the DRC ing the ility, while protec environment, an td objects to som P a r l i a m e n t of H.R. 39 e of the provisio 68 on those grou ns nds. finalizes legislation relating to the export of polished diamonds. Its a great day for the Democratic Republic of Congo and for Central Africa to finally enter downstream of the diamond production process, said President Joseph Kabila. The trend to add value in the country of origin is a growing development in diamond producing countries in sub Saharan Africa and we welcome DGIs investment in the DRC to that end. IM

essage .....Instant M tives: IM.. perla

ber of su les claims a num Industrias Peno the world st silver mine in q Fresnillo: riche Mexico hest gold mine in q La Cinega: ric ld mine in Mexico : largest go Mexico q La Herradura gest zinc mine in co I. Madero: lar d largest q Francis ical complex, an gest metallurg et-Mex: fourth lar er worldwide. qM produc metallic bismuth refined silver and

Polished DRC diamonds

The Emaxon Polishing plant in Kananga, Democratic Republic of Congo (DRC), which has been operational for several months, will soon go into full production. The DGI Group began construction of the plant in August 2004 and completed the project in less than 12 months. When full production begins, the state-ofthe-art diamond polishing plant, the first of its kind in the DRC and Central Africa, will employ as many as 600 workers. The plant will polish, sell locally, and export to leading world markets, diamonds mined exclusively in the DRC, indirectly injecting hundreds of thousands of dollars into the Kananga economy on a monthly basis. This outstanding investment will have a positive, far-reaching, and large social and economic impact on Kananga, Kasa Occidental Province, and the greater DRC, stated Kasa Occidental Province Governor Claudel Lubaya, who was instrumental in bringing the plant to Kananga. The stable and improving economic and political climate in the DRC, which is steadily restoring confidence in the international community, was an important factor in Dan Gertler, President of the DGI Group of Companies, based in Tel Aviv, Israel, deciding to invest. While some view the DGI investment as a risk, Gertler says he hopes other international investors will follow his pioneering move. I greatly appreciate President Kabilas courageous leadership and economic reforms that have enabled DGI to continue to invest in the DRC, stated Gertler. President Kabilas leadership has changed the business climate throughout the country, putting faith in international investors, which I believe has made this DGI investment a reality, continued Governor Lubaya. The DGI Group has been operating in the DRC for more than five years, through

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January 2006 1115: International Symposium on Environmental Issues of Mineral Industry, at V N I T, Nagpur, India. www.shrikant0101@rediffmail.com. 2326: Mineral Exploration Roundup 2006, Vancouver, Canada. www.chamberofmines.bc.ca/roundup2004.htm February 2006 6-8: Conference in Mineral Processing, Lulea, Sweden. Eric.Forssberg@ltu.se 7-9: Indaba 2006 Investing in African Mining Conference, Cape Town, South Africa. www.iiconf.com 13-16: GAW8 8th International Conference on The Geology of The Arab World, Cairo University, Egypt. www.salty2k.com/gaw8 February 26 March 1: GeoCongress 2006 - Atlanta, Georgia, USA. www.asce.org/conferences/geocongress06/ March 2006 5 8: PDAC, Metro Toronto Convention Center, Canada. www.pdac.ca/pdac/conv 7: Geomechanics Regulations, Risks and Liabilities, Perth, Australian Centre for Geomechanics, acg@acg.uwa.edu.au 7-8: JKMRC International Student Conference, Brisbane, Australia. admin@jkconferences.com

Diary

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Global Fuels Conference & Exhibition www.GlobalFuels.co.uk Hoss Equipment Company www.hossequipment.com

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8-10: 2nd International Seminar on Strategic versus Tactical Approaches in Mining, Perth, Western Australia. www.acg.uwa.edu.au 12-16: TMS Annual meeting/exhibition, San Antonio, USA. mtgserv@tms.org 1314: Gravity Concentration, Perth, Western Australia. www.min-eng.com/gravityconcentration06/index.html 1517: Comminution, Perth, Western Australia. www.min-eng.com/comminution06/index.html 2023: 6th International Conference on the Geology of the Middle East Al Ain, United Arab Emirates. www.fsc.uaeu.ac.ae/Geology/c/me.htm 26-29: 18th Industrial Minerals International Congress, San Francisco, USA. conferences@indmin.com

Hitachi Construction Machinery Co. Ltd IBC www.hcmac.com Infomine www.infomine.com Intec Video Systems, Inc. www.intecvideo.com/mining.htm Micon International Ltd www.micon-international.com Mining Capital www.imccapital.com Minova International Ltd www.minovainternational.com Normet Corporation www.normet.fi Outokumpu Technology www.outokumputechnology.com Sandvik Mining & Construction www.smc.sandvik.com Sandvik Tamrock Corp. Toro Loaders www.toro.sandvik.com Sociedad Nacional www.snmpe.org.pe SRK Consulting www.srk.com Thomas Mining www.thomasmining.com 39

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2729: SME Annual Meeting & Exhibit, St. Louis, USA. www.smenet.org/meetings/AnnualMeeting2006
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